The real estate climate has gradually improved, little by little, since the big bust of 2008. Still, millions of Americans are underwater in their mortgages (owe the bank more than the home is worth) and it may take over a decade for this situation to reach acceptable levels. The holdover effects of the recession are still evident, with the courts still seeing many foreclosures and short sales left over from the housing bubble crisis.
While there are over 1.5 million residential properties for sale at any given time in the United States, another interesting trend is continuing to flourish. The rental market is red hot, indicating that more and more people are choosing to rent rather than buy. This is bad news for people with properties for sale, particularly those facing foreclosure or other issues like back property taxes.
In addition to the rise in people renting, rent prices continue on an upward swing, making it harder for renters to save up for a downpayment on a house. For homeowners with properties for sale, this means that even if you get a buyer who’s interested, they may not be able to follow through with the purchase if they can’t meet the lender’s down payment requirements.
If you’re considering selling your house in the near future, it’s a good idea to keep an eye on these housing market trends so that you can make an informed decision on the best way to move forward with the sale of your house. All it takes is a half a percentage point increase in mortgage rates and the price of your home will go down. Remember, it’s what buyers can afford to pay every month, not just the price of the house. Stay aware and informed and you will do well.