I was just thinking of a past movie title, It's a mad, mad, mad world! While the movie was funny, the current real estate market is not. I have never seen so many obstacles in the way of someone buying a home.
Low housing inventory levels have been with us for a while now. Well before the pandemic hit. There just have not been enough homes available on the market to satisfy the buyers looking to purchase a home. This imbalance helps push home prices up.
Then we get rates rising. Sure, they are not at the levels we saw back in the 80's where rates when I purchased a home were in the 13.5% range, but current rates have begun to inch up. Every time the rates tick up another quarter percent some buyers lose the financial ability to get a loan.
Now we have inflation to deal with. As everything rises in price families who may have been looking for a home may no longer qualify for loans because of their increased monthly expenses.
At least the sellers are making out, right? Not so fast. Most sellers need to purchase another home after the sale of their current home and are finding how difficult it is to be a buyer in this market.
What's a person to do? Consult with a real estate professional. We have armed ourselves over the past several years with many new weapons to fight this war such as appraisal gap clauses, escalation clauses, and more. If you are looking for real estate help now is the time to seek out a trained professional who can improve your odds of success in the crazy market.