Recently, an increasingly common phenomenon in the housing market is occurring – people who are selling their homes are simultaneously becoming buyers. This phrase explains that when prices and mortgage rates rise, some sellers will not list their homes and in turn won’t be able to buy a new home.
The trend of sellers becoming buyers means a lower quantity of homes available for sale which impacts the ability of buyers to find and purchase a home. With a low number of homes for sale, sellers have leverage to yield higher prices for their current home. In addition, buyers may be forced to compete for fewer homes on the market resulting in bidding wars and contested offers.
Upward pressure on home prices and mortgage rates is making it difficult for homeowners to successfully sell their homes and find another. Main elements include:
– Homeowners who are selling their homes are becoming buyers at the same time
– With fewer homes on the market, sellers have leverage to increase home prices
– Buyers face competition for the few homes available on the market
– Rising home prices and increasing mortgage rates make it difficult for homeowners to buy and sell simultaneously
You can read this full article at: https://www.housingwire.com/articles/existing-homes-sales-market-falls-again-lacks-sellers/(subscription required)
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