What is it really worth
Whether it is art, that classic car or real estate, the answer is always “whatever someone is willing to pay for it.” As a seller, the willingness to wait for that “someone” to come along that is willing to pay what you are asking often pays off and it is not really an issue this buying season. With more demand than supply in the housing market, prices have risen and will likely continue to rise for the remainder the year. But demand, the lack of inventory and the subsequent price increases can lead to overvaluation in many markets.
As home prices have increased, wages have failed to keep pace. It is becoming more and more difficult for average wage earners to buy entry level homes in many markets. According to CoreLogic, just about half of the top 50 markets, based on housing stock, are currently overvalued. That is not good for establishing a sustainable market. With new construction not likely to catch up to demand for quite some time it is likely that demand by those that can still afford a home will continue to drive up home prices, further widening the gap between wages and home prices.
Potential homebuyers, who may be feeling like affordability is an issue for them, require some nurturing to keep them in the market. Creative financing options tailored to meet a borrowers needs can make homes more affordable for many borrowers. Making those potential buyers aware of options available to them is the responsibility of any good lender. In addition, down payment and closing cost myths still exist among many first-time homebuyers. Working with a lender willing to take the time to educate and work with them can make all the difference. Embrace has the product base and is willing to invest the time and energy in your clients to keep them in market and make them homeowners. Let’s get together to talk about what we can do to help you.