MarketWatch: Weekly Real Estate Update for Riverdale, Bronx – 1/20/2025 – 1/27/2025

Did You Know?

*Could Open House activity increase? The new real estate rule requiring home buyers to sign agreements with brokers to tour houses privately may make open houses, which don’t require buyer agreements, an option for shoppers who aren’t ready to commit to an agent? (Axios)

* The lithium-ion batteries in electric vehicles and Tesla Wall power storage made the LA wildfires more difficult to extinguish and clean up in areas. The batteries can reignite after the initial fire, posing a risk to firefighters and cleanup crews. And they can release heavy metal toxins into the ground. Fires in EV’s burn much hotter than those in conventional gas-powered cars and can reach 5,000 degrees Fahrenheit, compared with 1,500 degrees in a gas-powered car fire. Ev’s, though, are less likely to catch fire: Tesla says that its vehicles are 1/8 as likely to catch fire compared to the average car as gasoline is highly flammable, and most fires in traditional cars are caused by fuel leaks.

*Thinking about renovating? Here are some action steps from the pro’s:

1. The first step in any renovation is to identify the essentials, what’s definitively required, then make a second wish list of nice-to-haves.
2. Doing things all at once is more efficient than doing different projects piecemeal.
3. Do your research: Prices differ dramatically by market and chosen materials, which can, in turn, impact labor costs.
4. Make a list of every single item in your home that’s being changed, including little details like cabinet hinges and dimmer switches. Then plug those items into a spreadsheet and assign a guesstimate cost to each. That is your budget, not some random number pulled out of the sky….
5. Contractors typically charge 10-20% of the overall cost of the project. Architects bill 8-20% on top of the total project budget. Know what the pro’s charge and at what level. Will you need to live somewhere while renovating? Add that to your budget…
6. What could you DO YOURSELF without sacrificing quality.
7. Hire the right team/people with good references. Cheap can be expensive.
8. Evaluate the cost of the renovation versus a move or rebuilding from scratch. (HOUSE BEAUTIFUL)

Mortgage Rate Updates:

The average rate on a 30-year fixed mortgage backed by Freddie Mac dropped to 6.96% as of January 23rd, easing from the highest level since early May 2024 after five consecutive weeks of increases. The decline aligned with long-dated Treasury yields as easing core inflation reinforced expectations for Federal Reserve rate cuts this year, with markets now pricing in the first reduction by July. “After crossing the 7%-mark last week, the 30-year fixed-rate mortgage saw its first decline in six weeks. While affordability challenges remain, this is welcome news for potential homebuyers, as reflected in a corresponding uptick in purchase applications,” said Sam Khater, Freddie Mac’s Chief Economist.

Source: Freddie Mac