The problems of a nationwide housing market get tougher with the beginning of the summer months.
“We have never experienced this intensity before,” says Patrik J. Welty, owner of Legacy Realty in Fenton.
It’s a seller’s market and homes sell quickly and in some cases are well above the asking price or even well above their real value.
“Imbalance between buyers and sellers. There are so many more buyers than we have sellers, ”said Welty.
In around 88 percent of the metropolitan areas, home prices rose by double digits this year. The rise is in home prices, and demand can be difficult for buyers to penetrate.
Welty advises people to work with a knowledgeable real estate professional.
“There are techniques. There are ways of bringing people into a home, but they have to be open to maybe doing things a little differently. To find this house,” Welty said.
Welty said he advises some buyers to move to a traditional loan instead of using an FHA loan.
As FHA loans have more red tape and come with a hefty down payment to level the playing field.
While real estate prices are soaring – that makes many sellers cash in on their homes – that’s also a catch 22.
“The problem is, there are salespeople who are. Tried to market their home because they have never seen the prices they see in their neighborhood before. But if they look around and see no options to buy, they don’t want to be homeless, ”Welty said.
Welty said while house prices are high, interest rates are low, which is a real incentive for home buyers.
When could this housing shortage end? Welty thinks it will take a while.
“It’s difficult to see the way. It looks like this imbalance will continue for some time, ”Welty said.