Two Big issues facing the Housing Market

Is now the right time to sell your house? The current housing market could be a sweet spot that may work in your favor. Two main factors are holding back potential sellers from putting their homes on the market: rate-locked homeowners and fear of not finding something else to buy afterward. 

 

“Two dynamics are keeping existing-home inventory historically low – rate-locked existing homeowners and the fear of not finding something to buy.” - Mark Flemming Chief Economist at First American

Rate-Locked Homeowners

Rate-locked homeowners have mortgages at lower interest rates than what lenders typically offer today—over 6%. Because of this, many prefer to stay put instead since moving would mean a higher borrowing cost. This situation contributes to an overall shortage of inventory in the housing market. However, as mortgage rates start to fall throughout the year, more people might decide to move. 

 

The fear of not finding something to buy

The other issue preventing homeowners from selling their houses is the fear of not finding something else to buy afterward. Fortunately, this issue can be resolved by working with a local real estate expert and exploring all your available options—including newly built homes or leveraging your current home equity. According to ATTOM, 48% of mortgaged properties in the US are considered equity-rich, so don't overlook these options.