Where Are The Homes
Where did the homes go? The number of homes newly listed on the market was down 18% in May and 16% in April compared to last year. Why? Well, there are some pretty strong reasons to keep people from selling their homes right now. Excluding those who bought over the past year, most owners probably have a mortgage rate between 2.5% and 3.5%. If they sell their house and buy another one now, they’ll be paying over 6.5%. In addition, if you have a homestead exemption, you’re likely paying property taxes based on an assessment that is quite a bit below market value. If you go buy another home, then you’re going to end up paying taxes on a fully appraised home. When you combine these two factors, the monthly cost for housing is a lot higher. That’s making people rethink whether they really need to make a move at this point. People who have to move for a job or because of a divorce will certainly move, but those who simply want to move, may decide to stay put for a while.