The pandemic housing market continues to weigh heavily on homebuyers with soaring house prices, the threat of rising mortgage rates and worries about job stability, all contributing to weak buying sentiment of a house.
“It was traumatic, I have a hard time remembering those things because it was a time of trauma,” Victoria Vasquez recently closed in a new home in the suburbs. Her experience was not unique to her, she echoes the hundreds of other home buyers who have gone through it as well.
“I think there were many times where we were like we’re just going to rent, we’re going to tap,” Vasquez said.
Vasquez knows the home market from both sides. She sold her condominium in the city earlier this year.
This sale was the easy part as the condo was sold within weeks and turned a profit. The benefits did not last; they were gone when it came time for her to make an offer on her new home in the suburbs.
“It cuts you off so to speak, you’re excited about the profit you’ve made and all of a sudden you have to make the same kind of offers on the properties you’re looking for, and that was very short – lived,” Vasquez said.
As affordability constraints continue to weigh on the housing market, Fannie May says its Home Purchase Index fell to 71.8 points in January – its lowest level since May 2020, the survey found. National Housing Organization.
The difficulties of buying a home are not lost on real estate agents.
A management broker who spoke with NBC 5 says the best thing a buyer can do is go through an agent when buying that new home.
“There are facets of the deal that can be walked through to help that buyer win that deal over time, if they really take advice,” said Deena Schencker, a management broker. make an offer and expect it to be accepted immediately.”
A new wave of homebuyers is contributing to bidding wars across the country. Young first-time buyers who once lived at home are now making offers.
“They’re looking to see what’s coming in the market, most of them contacting real estate brokers and saying, ‘I want to see this, I want to see this right now,'” Schenker said. they have the disposable income, instead of spending it on Starbucks, now they’re spending it on becoming homeowners.”
Interest rates are also expected to rise over the next few months, making buying a home even more expensive. However, Schencker’s message is to stay patient and work with your agent and lender to buy that home.
“As long as you’re patient and follow all the advice you get from your lender and real estate professional, you’ll eventually find your perfect home,” Schencker said.
Additional information on Fannie May’s investigation is available here.