Fewer people seem to be moving right now in the recent past, and there are three main reasons behind this change.
In the past few weeks, one question seems to be on the minds of buyers and sellers alike: What the heck is going on with our market?
Sellers, in particular, have been surprised to find that their homes aren’t flying off the market like they might have in previous months. In truth, the extremely hot market we were experiencing toward the end of 2018 has passed. Conditions are far more
balanced right now. But what caused this change? Why aren’t people moving as frequently as they were a few months back?
There are three primary factors behind this:
- Many homeowners still don’t have enough equity. Even though it’s been more than a decade since the market tanked in 2008,
there are still plenty of people out there who haven’t built enough equity to sell.
- Some homeowners are afraid of the unknown. Moving is a major life decision. Many would-be sellers fear they won’t
be able to find a home that matches their wants and needs—especially if they’re going to have to sell their current property before buying their next.
- Some would-be buyers are turned off by rising interest rates. Though rates are no longer in the 3.5% range that they were
in at one time, they’re still historically low. Even so, some would-be buyers don’t see it that way. They’re afraid of locking in a rate that’s higher than what they had hoped to secure.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.