Last week, we talked about stock market volatility and the potential impact on the home buying consumer. Last week’s mortgage application numbers seem to reflect that impact was significant, with purchase applications down 6% for the week—but still 4% higher than last year.
What we may have witnessed is the result of some frustrated homebuyers deciding to sit it out. Slightly higher rates, higher than expected home prices on limited inventory, and that market nest egg teetering next to Humpty Dumpty—on the aptly named Wall Street—may have been too much for many to stay in the game. Those who seemingly opted out may have been pushed by the belief they can’t find a home they can afford.
According to a new survey from the National Association of Home Builders, homes today are selling in an average of about 40 days. That is almost two weeks faster than last year. That is great for home sellers, but it is taking a lot longer for potential homebuyers to find a home. It is taking about two-thirds of buyers more than three months to find a home. Forty-two percent of those surveyed said prices for the homes they wanted to be in were not anything they could afford to buy.
In whatever purchase endeavor a consumer is undertaking, affordability is usually a strong influencer in the decision to purchase. When you can’t offer sale prices or BOGO half-off on homes for sale, you need to look at financing options to impact that affordability decision in a favorable way.
That is where Embrace comes in.
We will invest those two, three, or four months in your clients while they shop. We will bring them options that include FHA, USDA, VA, first-time homebuyers, and just about anything else you can think of to ensure they have the options available to keep home buying affordable for them. You find the most affordable listings, and Embrace will find the financing to ensure your clients become homeowners.