For the past several years, the housing market has been a good one for those looking to sell their homes. However, both sales and price growth have slowed, which should mean that buyers should be showing more interest in available inventory. Let’s take a look at why this isn’t necessarily the case.
A slowdown in sales among homes owned by older Americans may not represent an actual housing crisis. Instead, it could simply mean that first-time buyers and others looking to move up simply don’t like what they see. According to New Home Source, many buyers today want homes that have open floor plans or that have features designed to minimize energy use. Older homes generally don’t have those features or are too expensive for the average buyer to put serious offers on.
Lack of Inventory Could Be Playing a Role
According to Real Trends, a lack of inventory in the housing market today could be playing a role in keeping sales down. Buyers don’t necessarily want to get into a bidding war with others who are interested in a property as it can result in overpaying for a home. Older homeowners aren’t interested in selling because they don’t want to pay more for a home when they could be on a fixed income. Homeowners may also have a lack of interest to sell because they don’t want to risk losing their mortgage interest deduction and low interest rate on their mortgages.
Is This Worldwide?
According to Chileno Bay Resort and Residences, Cabo has been a popular place to retire, which is why the housing market is full of homes priced between $3–4 million on average. Of course, it isn’t the only city where homes are selling for top dollar regardless of their condition. Cities such as London and Toronto have also seen the prices on homes and condos go up exponentially over the past several years. In the United States, it is almost impossible for the average person to afford the cost of living in large cities such as San Francisco and Seattle.
Older folks who are looking to sell their homes will need to be patient in finding the right buyer. In the meantime, there may be other options for homeowners who are looking to liquidate such as using a property as a rental. Investors may also be willing to purchase a home in any condition from a person who needs to sell their property immediately.
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