Home News The three biggest challenges homebuyers are facing right now, according to agents and buyers

The three biggest challenges homebuyers are facing right now, according to agents and buyers

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It’s no secret that buying a home is difficult these days. Home buyers face rising interest rates, low inventories, and still-high prices. Yahoo Finance sat down with both professionals and home-seekers to see what the market really looks like. Here’s what they had to say:

Rising interest rates keep buyers off track

“Generally speaking, buyers are really hesitant to buy right now for a variety of reasons, including the new interest rates,” said Ed Fitz, a real estate agent and partner in Los Angeles. No one knows where the market will go next, in Los Angeles, California, or even at home. “

The average 30-year fixed loan is currently hovering at around 6.5%, compared to around 3.5% a year ago. As a result, the National Association of Realtors recently reported 5.03 million existing home sales in the US last year, down 17.8% from 2021 and the lowest home sales since 2014.

Danielle Cohen, who has been looking for a home in Los Angeles for about a year with her husband David Jervey, said she “stopped badly when interest rates went crazy and now there aren’t many finds on the market.” . 2 years.

low stock

Last week, the National Association of Realtors reported that housing inventory 970,000 units in December, Decreased by 13.4% from the previous month.

“I think a lot of people are afraid to list their homes right now, so if they didn’t have to, they wouldn’t list them,” Jarvey added.

Homes currently under contract for sale will be seen December 30, 2015 in Silver Spring, Maryland. Contracts to purchase previously owned U.S. homes fell his November for the third time in four months, indicating growth potential in the U.S. housing market. Let cool. The National Association of Realtors (NAR) said Wednesday that its pending home sales index fell 0.9% to 106.9.Reuters/Gary Cameron

Getting the right price is hard

Sellers on the market are hesitant to lower their prices. The U.S. real estate market is coming off a long stretch of expansion, and consumers are psychologically not keeping up. Fitz collects data on the phenomenon through an app he launched called .Residence: Game of Homesa sort of “The Price Is Right” game focused on real estate.

House prices have remained consistently high despite rising interest rates. For example, the national median existing home price he hit $370,700 in November, up 3.5% from a year ago. According to the National Association of Realtors. This was the 129th straight month of year-on-year growth.

“People who aren’t actively participating in the market are just guessing the price… they’re guessing higher than where the homes are actually selling,” Fitz said. The average consumer’s mind has not caught up with the current market realities.”

But there is hope. Jason Oppenheim is Netflix’s (NFLX) The LA-based reality TV series “Selling Sunset” has made an impact on real estate prices going forward.

“In terms of prices, there will be some stability, which is probably healthy for the market,” he said. “We don’t want a spike or a plunge, so I think the price-related real estate market will be relatively healthy over the next few years.”

Dylan Croll is a reporter and researcher at Yahoo Finance. Follow him on Twitter. @CrollonPatrol.

Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on her Twitter. @agarfinks.

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