You might want to BUY NOW before the next surge…
Home prices are going UP
Why? Low inventory
It has been dropping steadily since September of last year
Why? Fewer and fewer people are selling their homes
Many of them have mortgages with interest rates around 3%
If they sell, they have to qualify for a new loan at current market rates near 6.5%
Who is buying all these homes?
They pay CASH and see what’s happening.
Rents and values are going UP.
Rents have been going up for the past 10 years
In the past 3 years, rents are up 36%
Anybody paying rent should be BUYING NOW!
Most sellers are willing to assist with closing costs.
The payment might be rough at first, but it is a least going towards building equity.
Mortgage interest costs are a large tax write offs for home owners.
And down the road, you will likely be able to refinance into a lower rate.
If you don’t buy now, when interest rates do go down and everyone wants to buy,
the surge is going to make it even harder to find a home you like.
A key factor to consider is the low inventory of homes for sale. This indicates an under-supply situation, in contrast to the past when there was an oversupply. For a market crash to occur, an excess of houses for sale would be required, yet the available data does not support such a scenario.
The housing supply primarily originates from three principal sources:
- Homeowners opting to list their properties for sale.
- Newly constructed residential units.
- Distressed properties, which encompass foreclosures or short sales.