$\"The$ \n

The biggest challenge the housing market\u2019s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, <\/em>explains<\/a> the root causes of today\u2019s low supply:<\/p>\n\n

\u201cTwo dynamics are keeping existing-home inventory historically low \u2013 rate-locked existing homeowners<\/strong> and<\/strong> the fear of not finding something to buy<\/strong>.\u201d<\/em><\/p><\/blockquote>\n
Let\u2019s break down these two big issues in today\u2019s housing market.<\/p>\n\n
Rate-Locked Homeowners<\/strong><\/h4>\nAccording to the Federal Housing Finance Agency <\/em>(FHFA), the average interest rate<\/a> for current homeowners with mortgages is less than 4% (see graph below<\/em>):<\/p>\n\n
$\"The$ <\/a><\/p>\n\n
But today, the typical mortgage rate offered to buyers is over 6%<\/a>. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate locked<\/em>.<\/p>\n\n
When so many homeowners are rate locked and reluctant to sell, it\u2019s a challenge for a housing market that needs more inventory. However, experts project mortgage rates<\/a> will gradually fall this year, and that could mean more people will be willing to move as that happens.<\/p>\n\n
The Fear of Not Finding Something To Buy<\/strong><\/h4>\nThe other factor holding back potential sellers is the fear of not finding another home to buy if they move. Worrying about where they\u2019ll go has left many on the sidelines as they wait for more homes to come to the market. That\u2019s why, if you\u2019re on the fence about selling, it\u2019s important to consider all your options<\/a>. That includes newly built homes, especially right now when builders are offering concessions like mortgage rate buydowns<\/a>.<\/p>\n\n
What Does This Mean for You?<\/strong><\/h4>\nThese two issues are keeping the supply of homes for sale lower than pre-pandemic levels. But if you want to sell your house, today\u2019s market is a sweet spot<\/a> that can work to your advantage.<\/p>\n\n
Be sure to work with a local real estate professional to explore the options you have right now, which could include leveraging your current home equity. According to ATTOM<\/em><\/a>:<\/p>\n\n
\u201c. . . 48 percent of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter<\/strong>, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market values.\u201d<\/em><\/p><\/blockquote>\n
This could make a major difference when you move. Work with a local real estate expert to learn how putting your equity to work can keep the cost of your next home down.<\/p>\n\n
Bottom Line<\/h3>\n
\nRate-locked homeowners and the fear of not finding something to buy are keeping housing inventory low across the country. But as mortgage rates start to come down this year and homeowners explore all their options, we should expect more homes to come to the market.<\/p>\n<\/div>\n\n<\/body>","protected":false},"excerpt":{"rendered":"
The biggest challenge the housing market\u2019s facing is how few homes there are for sale. Mark Fleming, Chief Economist at First American, explains the root causes of today\u2019s low supply:<\/p>\n","protected":false},"author":1,"featured_media":3706,"comment_status":"registered_only","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[12],"tags":[29,27,20,18,28],"class_list":["post-3705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-insight","tag-idaho-real-estate","tag-north-idaho-homes","tag-rain-silverhawk","tag-real-estate","tag-sandpoint-idaho"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t