Finding it difficult to purchase a home? Perhaps you are a seller and are seeing your sale stalled due to your buyer's funding issues. You are not alone. There are deals in limbo due to three key factors.
THREE KEY FACTORS
1. Inflation - The U.S. economy is reeling from over inflated prices and delays in goods production and delivery. Gasoline and diesel prices are climbing at uncontrolled rates. Consumers are spending more and purchasing less.
2. Interest rates - In an effort to curb inflation, the Federal Reserve has raised the prime rate to over 5% currently. Rising interest rates continue to impact first-time buyer's ability to secure necessary funding for new home purchases. Saving for the down payment may be a longer and more arduous process.
3. Inventory - It is a seller's market with inventory levels at all time lows throughout the U.S. The demand for home is still evident by the higher asking prices and bidding wars to secure properties. Many buyers are sitting on the sidelines waiting for the dust to settle. Even though housing starts are on the increase, material costs and skilled worker shortages have slowed new home construction.
The turning point in the housing market is still unclear. When will the shift to a more normal market happen rests with controlling these three factors.
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