Two main reasons, maybe more.
1. Interest rates are scheduled to go down a couple times this year, hopefully.
2. There's an absolute butt-load of home equity out there. Some people have gained 30-40% equity over the last few years, and it only takes 6% to sell? I think we'll see cooperative compensation coming from the seller easily when they need/want to sell.
Butt...but, because the seller may/will be approached by two different agents, the typical 5-6% combined fee might grow. Sellers can take a 9-10% hit if they have to. Realtors are going to cash in.
In case you're unaware, we're in a recession as of last autumn. Should be feeling this shortly. By June and July commercial real estate will take a huge hit as refi's come due and their rates have doubled.
Jobless statistics are lagging. Covid mortgage deferments are due. Home insurance and HOAs have doubled and more. This spells at least some foreclosures. That will open inventory that most likely will be grabbed up by investors who can afford the rates, pay cash, PLUS pay the seller agent fee.
HELOCs will rise due to personal indebtedness. The big housing picture looks gloomy, but it will continue to churn like a big paddle wheel in deep muddy waters. I would stick around. |
