Transforming Your Tax Refund into The American Dream

Discover the resurgence of FHA buyers and the powerhouse moves you can make with your tax refund in the realm of real estate—it's all in our latest lively discussion.  As your host, Brad Weisman, alongside the ever-insightful Pete Heim, we take a deep dive into the market's current ebbs and flows. You'll hear firsthand experiences of how FHA buyers are making a strong comeback, challenging the conventional loan dominance. We also brainstorm innovative ways to leverage that tax refund you might be sitting on, whether it's bolstering your down payment or lowering mortgage rates, amidst the ever-changing economic landscape.

While mortgage rates and housing market trends may seem daunting, we bring clarity to the topic, discussing the long-term benefits of homeownership and dissecting the latest predictions with our characteristic blend of expertise and entertainment. Tune in and get equipped with the knowledge you need to navigate the housing market like a pro, thanks to the engaging banter and insights from me and Pete.

"Always an entertaining look at the latest in the real estate market, both local and national.  Pete brings the Stats Every Month and we both share our opinions on what it means and where we think we are going in the market!  Other than that, we just have a lot of fun!"  - Brad Weisman

Keller Williams Platinum Realty
Brad Weisman has been a Realtor since 1992 and proudly sponsors this podcast!

Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.

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Welcome to The Brad Weisman Show (formerly known as Real Estate and YOU), where we dive into the world of real estate, real life, and everything in between with your host, Brad Weisman! 🎙️ Join us for candid conversations, laughter, and a fresh take on the real world. Get ready to explore the ups and downs of life with a side of humor. From property to personality, we've got it all covered. Tune in, laugh along, and let's get real! 🏡🌟 #TheBradWeismanShow #RealEstateRealLife #realestateandyou

Credits - The music for my podcast was written and performed by Jeff Miller.

Transcript

Speaker 1: 0:20

from real estate to real life and everything in between the brad weisman show and now your host brad weisman.

Speaker 2: 0:30

All right, we are back, and you know what? I am freshly shaven too. I I got rid of my beard completely and I'm now back to a goatee. And speaking of things that are back, um pete heim is back in the in the office. I always say in the office in the studio but it is in the office so I can say that yeah you know, it's always good to have you back but you know what's funny too, this morning I was brushing my teeth and for some reason I thought about you.

Speaker 2: 0:56

I don't know why. That's flat weird.

Speaker 1: 0:57

It's better than in the shower right, um, but uh, I'm brushing my teeth.

Speaker 2: 1:01

Yeah, exactly, I'm brushing my teeth and I'm like you know what Pete's coming in today and I'm like it's a month already, like these months go quick.

Speaker 1: 1:10

I felt like yesterday. Yeah, I thought the same thing. I'm like is this real? What the hell?

Speaker 2: 1:18

Because I rely on your little notification no, it's four weeks.

Speaker 1: 1:20

It's four weeks.

Speaker 2: 1:21

See, we always use him because he's younger, he can keep track of time a lot better than we can.

Speaker 1: 1:25

Much younger, yeah, much younger, but you know what? Well, it has nothing to do with when it is in the month. It's the same every month. No, it's the same every month.

Speaker 2: 1:31

It just felt quicker, it did it really did Really now, which is pretty awesome. Uh, it's, it's up 331 man. Yeah, that's a good sign. It is a great sign. Anything not close to balance, but no, anything that's going like this we're happy with.

Speaker 1: 1:48

Yeah, absolutely, it's going the right way. Very cool, very cool. Yeah, I mean. Diesel market's still around 20 and, yep, that's all the same. Absorption is still around a month yeah, it's all the same yeah, nothing has really changed that.

Speaker 2: 1:58

That too much, um. So that's the end of the show.

Speaker 1: 2:00

Uh, thanks for coming in, no just kidding.

Speaker 2: 2:01

Good to see you all. No, but one of the things I did want to bring up, which is really interesting I'm seeing a lot more FHA buyers in the market. Oh yeah, yep, I really am. I'm seeing a lot and I think it's good. So if you're an FHA buyer and you're out there and you were on the market before Come back into the market, it's good. A lot of those people decided to wait. Yes, yeah, so it's good.

Speaker 1: 2:25

But now they're back.

Speaker 2: 2:26

Yeah, I have a listing. Right now I got four offers on it that just came in today. They're all FHA, all of them, all of them, wow, yeah. So that's good. Yeah, to buy FHA, because there's nothing wrong with FHA. There's nothing wrong with it. It's just that the perception of that would be that, oh well, conventional is always going to be better.

Speaker 1: 2:46

But not always that's right and it's really it's not always better for the buyer.

Speaker 2: 2:49

It's the thing because FHA rates are lower.

Speaker 1: 2:52

They're lower. Yes, that's right. And for a seller, if the house is, oh, the FHA appraisals Peeling paint handrails, those kind of things. Yeah, it's not big stuff.

Speaker 2: 3:05

And a lot of times the buyers agree to pay for it anyway. That's right, yeah, yeah, all right, yeah, moving on.

Speaker 1: 3:10

So what do you got for me?

Speaker 2: 3:10

there, now the tax season's over.

Speaker 1: 3:21

Yeah, sort of yeah, let's do that.

Speaker 2: 3:22

Oh, now we're going to get audited. Way to go. See, here we go, we're going to get audited now.

Speaker 1: 3:26

Sorry, IRS, Just don't you know. Just shut the volume down. No, no, People get refunds right. Yeah, of course, and something to do with refunds we don't.

Speaker 2: 3:34

No, we're abnormal, we're Abby normal when we're self-employed. You pay in all the time, that's right.

Speaker 1: 3:43

We always pay, Anyway, but you know.

Speaker 2: 3:45

I'm not going to go there.

Speaker 1: 3:46

Anyway, but what you can do with the IRS tax refund that you got, you know you got what you got. You got down payment, yeah, and if you're saving for to buy a house, I mean that gives you a little bit of a boost. The average one is a little over 3,000 bucks. The average refund.

Speaker 1: 4:02

That's amazing. This past year, right, so you got down payment, you got closing costs right and you can buy your rate down. So if you don't like that 7% rate that's happening, you can buy it down and in fact, 3,000 would average out probably get you a good what? Half a percent, maybe, yeah, maybe, yeah. Absolutely Depends on the lender.

Speaker 2: 4:21

And that's a great thing to do, especially if you think rates are going to stay where they are and we're starting to see a little bit more of a staying where they are type of pattern. Yes, we are. Yes, we are right. Yeah, that's what? Well, I was looking at the moons last night, the three moons that lined up over around Saturn. And that said, about the rates.

Speaker 2: 4:40

It did on saturn and that said about the rates. It did, yeah, it did say it. I don't even know if saturn has three moons. I'm just gonna you know and you know what's gonna happen. Hugo, I'm gonna get emails. He is so stupid that doesn't even have three moons.

Speaker 1: 4:50

It's like none on that only on star wars yeah, only in star, that's right so what else you got?

Speaker 2: 4:54

what other numbers do you?

Speaker 1: 4:55

well. So in in related to that, should I wait, uh, for mortgage rates to come down before I move? Moving meaning buyers and sellers moving both. So basically, buyer demand right. Based on interest rate, movement or environment, the demand is weak, right? So statistically now this is a new survey that just came out between 7% and 7.5%, if buyers are only concerned about interest rates, it's going to be weak. Between 6.5% and 7%, it's limited. Then if it goes down to 6% to 6.5%, it's good, and between 5.5% and 6% it's strong, no, I think it's mayhem.

Speaker 2: 5:36

Mayhem is the word. I think you looked at the wrong one.

Speaker 1: 5:38

It's mayhem is the word. I think you looked at the wrong one. It's mayhem. Yes, strong equals chaos. Strong equals chaos, mayhem, mayhem Riding.

Speaker 2: 5:44

We already got that.

Speaker 1: 5:45

But no, the fence jumpers apparently come off the fence right now between six and six and a half is what the article said. So you were just talking about the FHA fence riders? Yeah, we were just talking about them and they're starting to come in. If you take your tax refund and get that seven down to six and a half, there you are. Yeah absolutely. And that's right where you are?

Speaker 2: 6:04

Yeah, it's incredible, and I think and what did we say before, If the rates don't come down, people are going to get used to them.

Speaker 1: 6:11

They're going to get used to them. Yeah, exactly, and I think they're starting to get used to it.

Speaker 2: 6:15

I think if it drops down into the low sixes again, people are going to go. Oh man, I'm taking advantage of this because now we know it can go from six and a quarter back up to seven a quarter in a very short period of time, Absolutely.

Speaker 1: 6:27

And if you're a seller, don't wait. Why, well, what does that mean for a seller? Why would it be good to wait and not wait? Yeah Right, it's not. It has nothing to do with more buyers for your house, right? It has to do with more houses, competition-wise, absolutely, which is where we're in, we're coming into.

Speaker 2: 6:43

So 331 on the market, which is awesome you know it's an interesting quote I heard. I don't remember where I heard it, so I can't give credit. It was interesting because it said you know interest rates right now are at 7.5%. You know what they are when you rent 100%. 100% Isn't that great. Isn't that great? Can I use that? You can?

Speaker 1: 7:02

use it, it's not mine.

Speaker 2: 7:03

I forget whose it is, but I'm just going to take it.

Speaker 1: 7:05

I'm just I'm stealing that, yeah, Wow.

Speaker 2: 7:07

That's awesome. It was like the easiest quote in the world. Yeah, yeah.

Speaker 1: 7:14

Rates are 70% for purchase you principle.

Speaker 2: 7:15

Yeah, it's all. It's all interest, it's all interest. It's just that it's not your interest. It's in the best interest of the person who owns the property, different kind of interest.

Speaker 2: 7:28

Yeah, different kind of interest. Absolutely, that's funny. Yes, it is so. So, yeah, so that was a good quote and it just shows you that once again, if you're, if you're renting and you can purchase, cause some of these rents are just out of control. We looked at a number that, over the past half, from 1969 until today, rents went from uh, what was it? Down at like one 50 or $200 a month to like $1,300 a month today. And everybody's like, yeah, okay, but the mortgage payments were up too. Yeah, but guess what, that rent didn't go towards anything. Right, and I'm not busting on people that have to rent?

Speaker 1: 7:55

No, absolutely that's not it.

Speaker 2: 7:56

But if you have a choice, don't throw your money into the renting thing. No. I hear you and years ago it used to be because it was cheaper. It was cheaper to rent than it was to buy. That's right and that's not really the case anymore.

Speaker 1: 8:11

Not really the case. You just need the down payment and all that and monthly payment-wise you're good.

Speaker 2: 8:16

Yeah, exactly All right. So what else you got there?

Speaker 1: 8:19

And with affordability rates are expected. Okay, they're saying, here we go, they're expected to drop and they're pushing it off a little bit because the inflation Inflation isn't budging. It's actually going up a little bit. Yeah, it's going up a little bit. So the Fed's not going to do their thing?

Speaker 2: 8:34

Yep, so they were going to lower it. They were going to lower it and it's not going to happen.

Speaker 1: 8:38

No. So they're saying now, towards the end of the year, it's going to happen. So we'll see. But if that, if that, hell, that'll help. Right Price? But prices, all the averages between M, nba, nar, freddie, fannie, right, yeah, goldman Sachs, they're all saying it's. It ranges between 1.4% and 5%. Wow, this year it's going to be 3.2%. That's a big span, Well that's because they don't know what they're doing Exactly.

Speaker 2: 9:02

We do, though, we do, we do yeah.

Speaker 1: 9:04

Yeah, we predicted 7%.

Speaker 2: 9:06

I got to say it and we were right on. Last year we were on it. Yes, exactly, we were off last night.

Speaker 1: 9:21

I'll tell you the moon and wages Wages are up 15 points over the normal increased tread line. The wage increased tread line, the normal increase that you see, it's the dotted line, it's 15 points ahead of that.

Speaker 2: 9:36

Wow.

Speaker 1: 9:37

Which means wages are up.

Speaker 2: 9:38

That's good for affordability. It's very good for affordability.

Speaker 1: 9:40

So it's still pretty affordable.

Speaker 2: 9:42

It is very affordable. Also, it's the best investment and investment vehicle that you're going to get. Yeah, because it's a forced savings. It's a forced savings account.

Speaker 1: 9:51

Forced savings account.

Speaker 2: 9:57

Yeah, man, you could sit there and say you know, there's a vacation, you want to go on and you don't pay the a hundred bucks. And then you do this you buy a new car and you don't pay the a hundred bucks a month. So this is for you. Have a beer emergency? You?

Speaker 1: 10:07

have a beer Holy crap.

Speaker 2: 10:08

How much are you buying? Where did you buy your beer and what? How much are you buying my gosh? I drink Tito's and it's not that expensive. It's an emergency. So you spend more because it's at midnight or what. Yeah, that's it Exactly.

Speaker 1: 10:22

More people with you, more people with you.

Speaker 2: 10:24

The other thing that we saw, too, was 66% of the people today are saying this is as of March 24, that it's a good time to sell. That's a fanny thing.

Speaker 2: 10:32

They did a survey, that's a good survey, which is not in March, but last February. We were down under 50%, yeah, we were. So if you look at the graph, there was a little dip. It makes sense. There's a little dip in December, okay, and then it's been gone. It's kind of on a trajectory going up, yep. So I think some of your, so you're going to see hopefully more listings hitting the market because of that kind of response.

Speaker 1: 10:56

That's right. And response that's right. And in that similar survey, one out of four people said that they think prices are going to come down. Oh, wow, that's 25% of the population. Okay, that's interesting. So that's really not. I mean, it's surprising that there's even that high, in my opinion, but that's incredible, isn't that funny? Yeah, it is. Yeah so well, and I.

Speaker 2: 11:15

I, you know, and I hear everybody talking about what is the reason and I'm not going to get into everything, but everybody's saying what's the reason for the prices going up? What's the reason? Is it this I hear a lot of times that hedge fund people are buying up single family homes and that's the reason the price is going up. I have to tell you, have you had one hedge fund company? Yeah, that's these hedge funds. Yeah, hedge fund. Have you seen one company? No, or one thing in that situation? Not here. I haven't seen that only ever in my life. Yeah, um, so I don't know where that information is coming from. It was, it was the investments property side.

Speaker 1: 11:52

It was the, it was the reeds, it was a. No, it was the um. What's the s? It was the single family rental homes, gotcha. Single family rental homes, gotcha. Single family rental homes, gotcha. 80% are mom and pops. Yeah, right, okay. There's these other percentages of regional investors and then there's national investors. And then it went into the hedge guys, the big ones, it was 3%.

Speaker 2: 12:13

Yeah.

Speaker 1: 12:13

And and most of them. Well, they're blaming it on them. They're saying because they own so many homes.

Speaker 2: 12:17

That's wrong. But, here's the argument I came back with that. Somebody said this to me and they couldn't answer the question. I said okay, that's great, let's just say they bought 20% of them. Yeah, who's living in them? People?

Speaker 1: 12:29

right.

Speaker 2: 12:30

People. Okay, so where are you going to put those people if the hedge fund people sell those homes to other people? Exactly Like there's. Here's the thing it's in India. Exactly Silence, silence. It's like as though, like because they bought them, there's nobody living in them. Exactly what? Do you think? They're just vacant? No, they're not vacant. I'm sorry, I'm getting on like a tangent but it's like it just pisses me off.

Speaker 2: 12:59

And between those 100 homes you either are renting you're renting some and there's people that are owner-occupied. Yeah, no matter what, no matter how you put those 100 homes, who you put in them, there's still 100 homes. Oh, yes, they are Right.

Speaker 1: 13:14

Am I not right? Your math is perfect.

Speaker 2: 13:17

You know I am a very swell mathematician.

Speaker 1: 13:21

You are yes.

Speaker 2: 13:21

You impress me yes.

Speaker 1: 13:24

Yeah, I impressed no one the three moon thing really got you Exactly. So let's keep going back to that. It's inventory, it's inventory, it's all inventory, it's all inventory. But listen to this media thing. This same article said it was about there were two decreases. No, this is national guys. Yeah, this is national. Two decreases last year, january of 23 and January of 24, had slight drops In the values. It was under 0.02.

Speaker 2: 13:54

And that's seasonal.

Speaker 1: 13:55

And the media said real estate values are going down, but the other 11 months averaged between 0.2 and 0.9 per month. Now, yeah, if increased guys. Yeah, the largest was August last year 0.9 in one month. Do you know what that is? I mean, we averaged 7.39 here.

Speaker 2: 14:15

That's 12%. Yeah, if you keep going, if you keep going, right Of course. Yeah, that's pretty easy math.

Speaker 1: 14:19

But the media said oh, here we go, said, oh, here we go. And guess what? January is the slowest month of the year because it's winter.

Speaker 2: 14:26

Yeah, nobody's doing anything. Yeah, it's nobody doing anything. I know it's crazy.

Speaker 1: 14:29

It's crazy. It gives us a headache. Now I'm all worked up.

Speaker 2: 14:31

Yeah, where's the Advil? Where's the Advil?

Speaker 1: 14:34

at. But then, going to the media again, I'm going to keep hammering the media and I'm going to do it. Listen people, we're going to do it. Do you know why? It's negative sales headlines, and that's what their business is and ours is real estate, and we watch these stats and get green every month about how they come out. So the foreclosures are up, everybody. He's still yelling at me.

Speaker 2: 14:55

I got him worked up, don't I? The sky's falling, the sky's falling, yeah.

Speaker 1: 14:58

So what's the yeah, give me these numbers. In 2023, there was 357,000 foreclosures in the United States and there was 324,000 in 2022. And in 2010, there was 2.9 million.

Speaker 2: 15:13

Is this your foreclosure voice? It is my foreclosure voice.

Speaker 1: 15:16

It's a great third party voice, isn't it? It's a really good voice. Oh, it's great, I like it. So, yeah, it ticked up from $324 to $357.

Speaker 2: 15:22

So we're still good, yeah, and there's no such thing as zero on that, and they all got absorbed.

Speaker 1: 15:26

Yeah, exactly Because of the inventory, absolutely.

Speaker 2: 15:28

Yeah, If we were in a problem with foreclosures. You know, actually there's part of me wishes we had a little bit more Bring it, but I mean seriously, because it would maybe run. We need to build. We've got to repurpose and build. Let's get those regulations down. Yep, Either take old warehouses, turn them into residential. You take old office buildings that are not going to be used anymore. Turn those into residential.

Speaker 2: 15:54

And then if there's land out there, berkshire Mall get the Berkshire Mall out of here. Let's just reuse stuff We've got the spots to do it and also loosen up a little bit on some of these regulations.

Speaker 1: 16:13

Let's out there we really got to get the regulations, absolutely, absolutely. Yeah, I think we're good, I'm done, I'm done. You're spouting off. Your blood pressure went up a little bit, you know. Oh wait, hold on. Oh, hugo has a question. Oh, hugo has a question. A few months ago I got that homestead letter in the mail.

Speaker 2: 16:20

So I want to know how?

Speaker 1: 16:22

how does that help me? I know, researching it was. It sounded like it was something good, but now that I got my accepted letter.

Speaker 2: 16:29

Now I don't know how do I?

Speaker 1: 16:31

make the benefit effect. You were accepted. Yeah, congratulations. Yeah, it's a good thing. It is a good thing.

Speaker 2: 16:36

Here's what you're going to save. Let's just put it this way Don't plan on any expensive trips. Don't plan on making a lot of money off of this, because you might get about $150 a year credit. Well, off of this, because you might get about 150 bucks a year credit.

Speaker 1: 16:50

Well, it depends on your taxes. Yeah, it depends on what you already pay. Okay, got it.

Speaker 2: 16:51

Got it. When I was off site and got my first one, I was like this is going to be great. I'm going to get this homestead credit yeah.

Speaker 1: 16:57

Yeah, and I got any taxes at all.

Speaker 2: 16:59

And then I saw it on my tax bill.

Speaker 1: 17:10

It was like $178 even worth the stamp yay for me, yay for me is right. Yes, all right. So yeah, so no, you still do it, though you should. Yeah, oh, absolutely do it.

Speaker 2: 17:13

I mean, it's only for principal residents, yep, yep, but and then the money comes from? Uh was supposed to come from the gambling, that's right. Right, it was yeah, which I guess it still is. I don't know that's where it's coming from from, uh, the fact that uh, pennsylvania had opened up more gambling and stuff available, so that's where it came from.

Speaker 1: 17:27

So, yeah, that's why you put it on yeah, put it.

Speaker 2: 17:30

Put it all on black or red and see if you win.

Speaker 1: 17:33

Don't do green, yeah, but if you put it all on, red and yeah, it'd be fine.

Speaker 2: 17:37

Absolutely that's what I would do. Oh, speaking of red, you're speaking of red that's right. All right, let's see. Let's see here real quick, let's do the red ball. We haven't done the red ball for a while. Win. Are there three moons on Saturn? There it is.

Speaker 1: 17:52

No, so we're going to have to check that out, see if it's real, I think it's wrong too.

Speaker 2: 17:56

I think there's a four moon Four five.

Speaker 1: 17:58

The one with the moon is Uranus.

Speaker 2: 18:00

Oh geez, there we go. I knew that was going to come up. No, I'm serious, google it. What's about the? Oh, okay, I'll check out.

Speaker 2: 18:11

There's so many things not enough time to say it all right, that's about it every time, pete comes in, it turns into much more than we thought it would turn into and, uh, we're just glad you're here. Come back every thursday at 7 pm. We got all kinds of great guests on here, and we even have pete too, so, uh, that's about it. Check us out on facebook, youtube and everywhere else you find your podcasts. All right, bye.