Why Home Shortages Persist Despite Sky-High Mortgage Rates
Download MP3In this episode, we explore the current state of the real estate market and its challenges. Here's what you'll learn:
- High Interest Rates and Stabilizing Prices:
- Interest rates remain high, and home sale volumes are dropping.
- While prices are stabilizing, some markets are seeing slight softening.
- Ongoing Inventory Shortage:
- Despite fewer buyers, there’s still not enough quality homes to meet demand.
- For well-maintained homes in good neighborhoods, demand continues to outpace supply.
- Reluctant Sellers and Fear of Rejection:
- Many potential sellers hesitate to list their homes due to current market conditions.
- Sellers are unwilling to deeply discount their properties and fear rejection if their homes remain unsold.
- Artificially High Prices:
- Limited supply is keeping prices elevated despite fewer buyers.
- Sellers are holding back inventory, further tightening the market.
- Future Challenges in Supply:
- Few new homes are being built, leaving a gap in inventory for 2024 and 2025.
- This shortage will likely continue until more sellers or builders step in.
- Opportunities in Rehabbing Homes:
- Many homes in poor condition present opportunities for contractors and builders.
- Rehabilitating neglected homes could meet demand at a lower cost than building new properties.
Join us as we discuss the real estate market’s current dynamics and how these trends could shape the future.
