Low Housing Inventory Explained

The real estate housing market is facing a unique set of circumstances that began in 2012 which has led to a decrease in housing inventory. Read on to understand the main factors causing this real estate trend.

-Elevated pricing is making it hard for mid-level homebuyers

First time homebuyers that purchased several years ago and want to move up can’t afford their next home so they are choosing to stay put.

-First time buyers are struggling to buy their first home

Since the second home buyers cannot afford to move up their homes are not entering the market to provide entry level housing for first time buyers.

-Some homeowners are still upside down with their homes value

These are pre-crash homeowners that refinanced or took out a second mortgage to recover from the financial losses they endured during the recession. Many might still be waiting for the value of their home to recover. This represents another segment of properties that won’t be hitting the market anytime soon.

What does this mean if you want to buy a home in Asheville or the surrounding area?

This means that it’s absolutely crucial to get pre-approved for financing and have your pre-approval letter in hand so that when your broker submits an offer it is presented in the strongest possible way because there is a very good chance you might be competing with other people who want the same home you are bidding on. If you are a cash buyer then have your proof of funds letter ready to go.

This also means that it is important to hire a knowledgeable real estate broker who will represent your interests so that you stand a good chance of getting the property you want. Call FBREC today to discuss how we can help you realize your real estate purchase!