Welcome back, Dreammakers, to Today in Mortgages! In this episode, hosts Michael and Richard discuss why the market has strong demand but weak sales numbers. Today’s article from
CNN.com says “Here’s why the housing slowdown isn’t lowering sales prices.” Buyers know they hold the cards right now, but sellers are stubborn. Unless you really have to sell, sellers won’t come off the price. Sellers are doing concessions, but once contracts get to the inspection stage we are seeing 15% of sales being cancelled, up from 6% in May. Showing that buyers are willing to walk away from contracts right now. Buyers are qualifying right on the edge, and don’t have room in their budgets to negotiate with the sellers or pay for more fixes found during the inspection.
Seems like we should be seeing a general across the board reduction in home prices. However, homeowners are sitting on low interest rates, and they don’t want to give away all of their equity. Buyers just can’t afford today’s prices. Listen in as we discuss this and more!
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About Today in Mortgages
Today in Mortgages, the show where we try to make sense out of the click-bait headlines in Mortgage and Real Estate news that clients and buyers are being flooded with every day. We’re trying to find our what’s real and what’s hype in the market news and discuss how mortgage and real estate professionals should be navigating these tricky conversations with clients who are getting scared away from the housing market.
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Interest rates are of course making home less affordable nowadays, but that’s not the only increase. Home insurance has increased in some areas as much as 50% in recent years. What can we do about this?
Interest rates are of course making home less affordable nowadays, but that’s not the only increase. Home insurance has increased in some areas as much as 50% in recent years. What can we do about this?
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