Help, I Can’t Find a Home!

4 Reasons Why Homes Are Hard To Find

Real estate is Hot right now. There aren’t enough homes to go around.

So what’s going on?

Here’s my opinion of why we are in this situation and why I don’t see it changing anytime soon.

1. The Housing Crash

In 2007 the housing market had a major correction, some describe it as a crash. No matter how you describe it, millions of homes were foreclosed and many of them were purchased by investors wanting rentals to manage. Many of these landlords are still holding on to these properties. Additionally, because of the crash, the building of new homes came to an almost complete stop. With the natural decay of older homes and loss of homes through disasters, there was actually a net loss of homes. (More homes lost than built) Over the past 13 years, the number of new homes being built has not kept up with demand.

interest rate.jpg — 2. Low-Interest Rates

Interest rates for home mortgages were at all-time lows for a long time. That created the ability for potential home buyers to purchase more expensive homes for less money and a lower payment than they could possibly rent a home. Initially, the process of qualifying for a loan after the crash was also difficult, but that’s no longer the case as the qualifications have loosened and made it easier for people to buy. Additionally, There are even down payment grants available for eligible homebuyers.

3. The Baby Boomers Are Here To Stay

The Baby Boomers are here to stay. With the advances of medical science, the Baby Boomer generation is staying healthier and able to stay in their homes longer. Additionally, they are holding on to their homes longer as they don’t have a lot of options to move into homes that would meet their potential needs or wants to downsize or help with physical needs. (See reason #1)

4. The Millennials Are HUGE

There are currently 72.1 Million people in the Millennial generation who are of home-buying age. This group’s age is currently 25-40 years old and is actually larger than the Baby Boomer generation. Plus, there is an additional 65.2 Million generation X who are aged 41-56 out there. The vast number of able-bodied home buyers is astronomical. We just don’t have enough homes available for all of those who want to buy one.

So What does this mean for you?

As you can see, the possibility of us staying in this type of market for a while is quite strong. Of course, the economy and a myriad of other factors can play a role and prove me wrong but, even if the economy tightens, the sheer number of people needing housing will apply constant pressure on the market to produce more homes and more eligible buyers.

Are you a Home Seller?

Are you a Home Buyer?

If you’re a home seller, you’re sitting in a pretty spot. The market to sell is strong, and I believe it will be for quite some time. You potentially will be able to sell your home for more than at any other time. Additionally, you can possibly buy another home with a large down payment from the equity in selling your home and have a lower payment than you currently have. Or, for some, no payment at all. The challenge will be finding a way to find and purchase your next home in a market tight on inventory. Contact me today to see how I can help you potentially sell your home for more money and find you a new home.

Be patient. I know it’s not easy but, If you’re a home buyer, this market, I believe, will be here for a while and will create some challenges to you finding your dream home. The best thing you can do is make a plan. Get yourself prepared by meeting with a lender to get pre-approved for a loan if you need it so you can be ready to pounce on a home when the one you want becomes available. If you don’t know of a lender to contact, contact me today. I can help you find a lender. Also, allowing me to work on your behalf will give you an advantage as I can help find the right house and help you negotiate the best deal for you.