Curious what’s up with real estate – from inventory to mortgage rates – in the U.S. housing market right now?
RE/MAX President and CEO Nick Bailey joined a recent NewsNation broadcast to share his expert insight on what’s happening and what’s ahead.
Click here to watch the news segment.
In an environment of higher interest rates and new fee adjustments, Bailey reminded viewers to consider all of their financing options.
“The center of the discussion has been the 30-year fixed rate, but what we’re seeing [is that] even though that’s a really popular product… buyers need to realize is they don’t have to take themselves out of the market because the 30-year fixed has gone up. There are alternate types of mortgage products out there,” Bailey said.
“A lot of these [new] fees are dependent on what type of mortgage you get. I would encourage people to look at adjustable rate mortgages, buy-down interest rates, or some low-interest products for first-time homebuyers.”
He also spoke to how hopeful homebuyers in the U.S. market still have the opportunity to achieve their real estate goals.
“Right now, the spring market is underway and there are some bright spots that are helping some buyers and sellers. Even with sales from February to March jumping by over 30%, a couple of things are happening that are different from say a year ago, even with higher rates,” Bailey explained.
He noted how it’s becoming more common nowadays for homes to sell below asking price, opposite of a year ago where bidding wars (which drove up prices) were rampant.
“Sellers are negotiating right now, and that’s giving buyers a chance,” Bailey said.
Inventory is a hot topic this spring, too.
“[A trend] that’s impacting the market right now is the record low inventory levels. There are just simply not enough homes on the market,” he said, noting that the U.S. inventory of constructed homes is 4.5 million to 5 million units short of optimum levels.
Bailey suspects a reasoning for this could be that move-up buyers are slower to the market this spring, potentially due to having locked down a competitive re-fi mortgage rate over the past few years.
“It’s going to take a little bit more time for people to settle in and have more confidence,” he said.
For more insight on the current housing market – as well as Bailey’s best tips for soon-to-be home sellers – tune in to the NewsNation segment.
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Written by LEAH CURTIS
