Experts are now saying that Supply is the Next projected “Housing Crisis” in America. The Housing market has gone completely in the opposite direction as the last crisis in which Millions of Americans found themselves upside down in homes and mortgages. Truly that was more of a “Bad financing” crisis than what’s happening today.
First time homebuyers are being crowded out because the number of “Starter” homes on the market has declined 43.6% if the past four years.
It’s simple. The homeowners who want to make the next step into something bigger or better just can’t afford to get to the next level. The number of “trade up” homes on the market is also down about 40% in the same time period.
“Meanwhile, mortgage lenders (despite record low rates) are still reluctant to extend credit to less than superb borrowers.” Myles, Udland, Business Insider
What does this mean to you, or the first time homeowner? Down payments are difficult to save and people just aren’t committed to staying in one area. When the economy is bad, people feel the instability and that means not wanting to commit to a mortgage a lot of the time. Why buy a house and move when your job could be eliminated or a lay-off could occur any day. There are plenty of reasons to fear an unstable economy and being a homeowner can be scary.
Is Portland feeling the pinch of this new crisis? Or Vancouver for that matter? Ask your friends and family who may be looking for a home in the area? There’s just not enough houses at the right price points to go around.