Homeowners Keep The Advantage
In the housing market we are currently experiencing, being a homeowner has some remarkable benefits. The fact that you are in possession of an asset that is in such high demand allows you to take advantage of the market. For homeowners, there has not been a better time to sell your house than there is right now. The limited number of homes for sale creates competition, and is currently allowing you to have the most eyes on your house as possible. There are a few factors carrying the demand for housing, and these factors will look to remain in place for the coming months. Here is why homeowners keep the advantage in the current real estate market.
Lack Of Inventory
Right now, buyers want a few things. The first thing they want is to find a home that they can realistically afford and win a bid on. This might sound easier said than done in today’s hot market though. Sellers have been receiving multiple offers on average now for over year. The crazy thing about that is, the less houses that are actually on the market, the more multiple offer situations that develop. With inventory remaining low, competition among buyers is going to remain a sticky situation moving forward.
Mortgage Rates Are Surprising
The next factor that is driving demand in the current market is the mortgage rate increases. What we have seen in terms of mortgage rate increases in 2022 has been nothing short of historical. In fact, this has been the fastest mortgage rate increase that has been documented. This motivated some buyers to make the next step to actually buying a home. However, it has started to price out buyers on the other hand. This should start to help with the inventory problem, and allow those buyers who have been looking finally find their dream home. Unfortunately, however, higher rates negatively impacts buyers and sellers alike. This is largely because people will stop wanting to move if they were on the fence because they are locked in at a lower rate where they are now.
Home Prices Look To Further Upside
Finally, we have the fact that prices will likely continue to move higher over the next few years. This is leading to an affordability crisis on the buyer side in the market. With higher rates and higher prices, it becomes harder to actually become a homeowner. However, this is where homeowner’s keep the advantage. Higher prices builds their equity in their home faster. This can lead to a larger return when selling, or allow them to use the equity in their home to fund other projects. Record high home prices have set sellers up to continue to be winners in the real estate market for the time being. Being on the homeowner side, there is not much that can go wrong with being a homeowner. You are in an advantageous position right now, and that does not look to change anytime soon. For buyers, good luck. Brighter times may be on the horizon. And for all those real estate market crash predictions, look at the data first then make your predictions.