The housing market has been on a rollercoaster ride in recent years, with unprecedented challenges impacting both buyers and sellers.
One of the most significant hurdles facing the real estate industry today is the acute shortage of available homes for sale. So…, what about that? We’ll Mark Fleming, Chief Economist at First American, pinpoints two primary factors contributing to this supply crisis and the proper term to describe this dilemma is existing home owners, rate-locked! and the fear of not finding something to buy.
In this article, we will dive into these two key issues that are currently plaguing the housing market, explore their underlying causes, and provide you with some insights into what they mean for homeowners like yourself and those of you who are prospective buyers.
The other formidable factor contributing to the housing supply crisis is the widespread fear among potential sellers that you may not find suitable properties to purchase if you decide to sell your existing home. This apprehension about the availability of desirable homes has led many homeowners to remain on the sidelines, waiting for more listings to hit the market.
In the current climate, it is crucial for those of you contemplating a sale to explore all available options.
One avenue worth considering is newly built homes. Why…? Especially given the current trend of builders offering incentives like mortgage rate buy-downs some as enticing as 4.5%. This could help alleviate concerns about affordability and also facilitate smoother transitions for you as sellers.
While rate-locked homeowners and the fear of not finding something to buy are indeed contributing to the shortage of homes for sale compared to pre-pandemic levels, the present housing market presents a unique opportunity for sellers like yourself.
By working with a local real estate professional, you as a homeowner can explore a variety of options, including leveraging your current home equity properly.
What Does That Mean? Great Question!
According to ATTOM, nearly half of the mortgaged residential properties in the United States are considered equity-rich, meaning that the combined estimated amount of loan balances secured by those properties is no more than 50 percent of their estimated market values.
This information underscores the potential benefits of putting your equity to work, which can significantly reduce the cost of purchasing your next home depending on how you invest it going forward.
Seemingly Rate-locked homeowners and the fear of not finding something to buy are undeniably contributing to the housing inventory shortage experienced across the country. However as we have just discussed, as mortgage rates gradually decline in the coming year and savvy homeowners explore all available options, we can expect to see an increase in the number of homes hitting the market.
In conclusion, while the challenges are significant, the housing market is dynamic, and opportunities exist for both buyers and sellers.
So Work closely with experienced real estate professionals, and consider innovative solutions that can help to navigate the complexities of today’s real estate landscape successfully.
Unlocking the housing market is possible, and with careful planning and informed decisions, you can and no doubt you will find the perfect place to call home!
In Episode 29 of “The IModern Experience Podcast,” host Zisses Gregory discusses the critical role of diversification in managing investment portfolios, particularly through luxury real estate, to hedge against inflation. This episode highlights the importance of geographic and sector diversity, showcasing how luxury properties not only enhance financial stability but also ensure long-term growth and security.
In Episode 29 of “The IModern Experience Podcast,” host Zisses Gregory discusses the critical role of diversification in managing investment portfolios, particularly through luxury real estate, to hedge against inflation. This episode highlights the importance of geographic and sector diversity, showcasing how luxury properties not only enhance financial stability but also ensure long-term growth and security.
IModern Luxury | Realty One Group
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