Delayed Sellers Cannot Wait Longer

Aloha, Lance Owens (RB) with LUVA Real Estate.

Over the past two years, significant demographic and economic shifts have occurred, influencing various aspects of the real estate market. According to the National Association of REALTORS®, the combination of 7 million new-born babies, 3 million marriages, 1.5 million divorces, and 7 million people turning 65 has created dynamic changes in housing needs and availability. These life events often necessitate changes in living situations, such as upgrading to a larger home, downsizing, or relocating. Additionally, with 4 million deaths, the turnover of properties through inheritance or sale by estates further adds to the housing market dynamics.

Moreover, the economic landscape has seen substantial movement with 6 million net new jobs and an astounding 50 million job switches. These job changes often lead to geographic mobility, driving demand for housing in different regions. The National Association of REALTORS® suggests that these cumulative factors will gradually weaken the "lock-in effect" where homeowners delay selling their properties. As these demographic and economic shifts continue to unfold, we can expect a more fluid and responsive real estate market, accommodating the evolving needs and circumstances of individuals and families across the country.

Additionally, current high mortgage interest rates have made many homeowners reluctant to sell, as they are locked into lower rates from previous years. This "rate lock" phenomenon means that sellers are hesitant to trade their existing low-rate mortgages for new ones at higher rates, contributing to a decrease in the number of homes available on the market​ (HomeLight)​​ (Freddie Mac - We Make Home Possible)​.

Another factor influencing sellers' decisions is the impact of capital gains taxes on the sale of their homes. When homeowners sell their property, they may be subject to capital gains taxes if the profit from the sale exceeds certain thresholds. This potential tax burden can deter sellers from putting their homes on the market, particularly if they anticipate significant gains​ (Freddie Mac - We Make Home Possible)​.

In short, life goes on, and the longer we wait to make a decision, the more life changes.
Please give me a call if you are ready to make that change.