These days the home search is a challenging one. There are not nearly as many homes for sale and there are many buyers. Why such tight circumstances? It boils down to the same factor for both seller and buyers: low interest rates.
Super-low interest rates
We are seeing historic low rates for home loans and they have been trending downward for months now. This has brought buyers into the market who might otherwise continue to rent. It has also motivated sellers to refinance, which in turn gives them a reason to stay in the same home with a lower monthly payment.
Few homes, high prices
This desire to stay in their current home means fewer homes are coming on the market. Basic economics tells us that when supply is low and demand is high, prices rise. This is exactly what we are seeing right now. Some are already talking about a bubble. There are even those planning on swooping in once the bubble has burst and picking up homes on the cheap.
While we can all agree that home prices are vastly outpacing salary raises, the loans being made are subject to much greater scrutiny. Not everyone can get a loan and some can not get enough of a loan to pursue the home they really want. All of this has vastly reduced current foreclosure activity and even future potential for foreclosure.
Do not wait
While you may not be able to get exactly the home you want or on the first try, it is well worth sticking to it as these same homes will be worth a lot more in the years to come. Keep your standards realistic and allow your search to expand beyond pre-set criteria. You will find a much closer match to what you are looking for (ultimately, a place of your own) than you may think once you are willing to make some tradeoffs.
If you are looking for someone to help you in your home search, contact me directly at 760 622 5087 or at [email protected]