We all know the story of Dorothy and Toto in the Wizard of OZ and how she wanted so much to go back home. So when she got her red glitter shoes from Glinda, the “good” witch, all she had to do was click her heals and keep repeating, “There’s no place like home.”
Elevated Prices and Rates
If only it were that easy today. With home prices elevated and interest rates high, many would-be homeowners have been priced right out of the market. More homes are now for sale, increasing the current inventory, but the problem of affordability remains. What was once in the price range of $250,000 is now more in a range of $400,000 to $500,000 and there are much fewer buyers who can budget for a home price near a half million dollars.
Many buyers have excellent credit scores, stable qualified income and a substantial down payment who simply cannot afford the high monthly payment on homes in this price range. The problem is not only affecting first-time buyers but also seniors or those wanting to retire. What has always been the American dream of homeownership has turned into a “tornado” housing nightmare.
Waiting out the market by renting a home is also an issue. Due to the high prices of homes and low inventory, many turned to renting a property but that created a rental market crisis as well. Rental vacancies are at an all time low and landlords have increased their rental rates to keep up with inflation and other expenses. Finding a rental home, condo or apartment at an affordable price is becoming difficult and causing some to co-habituate and share the monthly costs.
Even though now is a difficult time to purchase a property, there are special loan programs and down payment assistance plans that could help buyers considerably. We personally work with several outstanding mortgage providers listed under “Buyer Resources” who can research individual situations and offer guidance to every applicant. We work as a team to get you started on the path to knowing that “there’s no place like home!”