Real estate experts eyeing a new bear market and record high inflation are finding themselves changing their advice on how and when to buy a home.
Facing record inflation at 8.6%, American regulators have also ratcheted up interest rates, causing many previous would-be buyers to stay on the sidelines of an already overheated real estate market.
Some mortgage experts told TheStreet that even with prices occasionally softening, the market for housing still remains a tricky place to buy or sell a home.
Tabitha Mazzara, director of operations, MBANC, said some sellers are waiting to put houses on the market because they’re worried they would then find themselves between abodes.
“I wouldn’t sell. If you sell, where are you going to live?” Mazzara said.
“With inventory low and demand high, it’s a competitive market,” she said.
“You might make money selling your old house, but you still have to buy a new one, and it might be smaller or in a less desirable location,” Mazzara said.
You Might Not Find a Home Yourself
Sellers who do decide to put their homes up for sale may not see much of a profit either.
Jacob Channel, senior economic analyst at LendingTree, said that because the market is still cooling down, sellers might see little in the way of huge profits.
“Don’t rush into selling your house just because you think you’ll be able to get a price significantly higher than what you paid,” Channel said.
“Remember that if the price of your home has skyrocketed, then odds are the prices of other homes in your area have done the same,” he said.
“This means that if you sell before finding a new place to buy, you could end up priced out of the market that you’re currently in.”
The signs that buyers are finally slowing down can be found in a variety of places, but applications for new mortgages is one particularly helpful metric.
Data from the the Mortgage Bankers Association from June 10 saw applications for purchase mortgages falling 15% from the same period last year.
Channel said that’s because inflation, record high home prices and newly steep mortgage rates are slowly winnowing out interested buyers.
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