Post by account_disabled on Mar 11, 2024 4:08:56 GMT -5
The shortage of supply in the residential purchase and sale market in the US is due, to a large extent, to the fall in the stock of used homes . And the fact is that a large majority of homeowners claim to feel 'trapped' in their home and cannot move because they currently either do not have the budget to make the purchase or the conditions of a new mortgage are much more expensive than the payment they pay on their home. current home.
The decision for many is to postpone the decision until the economic situation improves. “It has never been more difficult to find an affordable home to buy in the US,” several experts highlight. The number of homes offered has been reduced by half if we compare it to the pre-pandemic period.
After the impact of the Covid-19 confinement, hundreds Cambodia Telegram Number Data of Americans began to move house, taking advantage of historically low interest rates to change homes or to refinance their mortgage. Nine out of 10 American homeowners with a mortgage, that is, about 46.1 million people (practically the population of Spain), have a rate below 6%, according to a report by Redfin Corp.
The average mortgage interest rate was below 3% in 2021, while now it is close to 7%, more than doubled. A benefit in monthly costs that many owners are not willing to lose, but that for many others can become a dilemma: if the house has become small or large, a divorce or an increase in the family with the arrival of children .
Now, the transactional market is stagnant with the replacement rate sinking, because homeowners think twice before putting their home on the market. “People forget that the vast majority of sellers are also trying to buy a home at the same time,” says Danielle Hale, chief economist at Realtor.com . “When conditions are difficult for buyers, it can also slow supply in the market.”
High mortgage interest rates do not seem to be relaxing in the short term, following the latest statements by the directors of the US Federal Reserve, which slows down the arrival of new stock to the market, and maintains a fall in prices since peaks that several analysts expected to be more pronounced but shorter over time.
One solution would be to increase new construction to make up for the lack of stock in the market . For now, sales of newly built homes have grown more than 20% in the last year, according to data from the US Department of Commerce. Another figure that has increased is the number of homes started and completed in the world's leading power, with an increase of around 6% in May, according to the Department of Housing and Urban Development.
But even as builders rush to ramp up production, that alone can't close the gap between supply and demand. And the only group that has historically kept the market moving is still absent: homeowners who are willing to sell. According to Realtor.com , the supply of used homes on the market fell 26% year-over-year in June.
The decision for many is to postpone the decision until the economic situation improves. “It has never been more difficult to find an affordable home to buy in the US,” several experts highlight. The number of homes offered has been reduced by half if we compare it to the pre-pandemic period.
After the impact of the Covid-19 confinement, hundreds Cambodia Telegram Number Data of Americans began to move house, taking advantage of historically low interest rates to change homes or to refinance their mortgage. Nine out of 10 American homeowners with a mortgage, that is, about 46.1 million people (practically the population of Spain), have a rate below 6%, according to a report by Redfin Corp.
The average mortgage interest rate was below 3% in 2021, while now it is close to 7%, more than doubled. A benefit in monthly costs that many owners are not willing to lose, but that for many others can become a dilemma: if the house has become small or large, a divorce or an increase in the family with the arrival of children .
Now, the transactional market is stagnant with the replacement rate sinking, because homeowners think twice before putting their home on the market. “People forget that the vast majority of sellers are also trying to buy a home at the same time,” says Danielle Hale, chief economist at Realtor.com . “When conditions are difficult for buyers, it can also slow supply in the market.”
High mortgage interest rates do not seem to be relaxing in the short term, following the latest statements by the directors of the US Federal Reserve, which slows down the arrival of new stock to the market, and maintains a fall in prices since peaks that several analysts expected to be more pronounced but shorter over time.
One solution would be to increase new construction to make up for the lack of stock in the market . For now, sales of newly built homes have grown more than 20% in the last year, according to data from the US Department of Commerce. Another figure that has increased is the number of homes started and completed in the world's leading power, with an increase of around 6% in May, according to the Department of Housing and Urban Development.
But even as builders rush to ramp up production, that alone can't close the gap between supply and demand. And the only group that has historically kept the market moving is still absent: homeowners who are willing to sell. According to Realtor.com , the supply of used homes on the market fell 26% year-over-year in June.