The Housing Market Is Not Doing As Well As Projected

The housing market is not doing as well as projected. Major new home builders like DR Horton and Lennar homes have not met goals for the quarter. This economic downturn in the housing market had been attributed to the increase in the interest rate while wages have remained the same. Home sales and cancellations are on the rise according to NationalMortgageNews.com.

In recent times we’ve seen the new home building industry soar and builder struggled to meet the demand. This lead to increased labor charges due to the scarcity of the labor pool. At the same time material prices especially lumber increased and builders were forced to increase home prices to cover the rising cost. The expense has been passed on to the customer who’s income has remained the same which makes homeownership less affordable for the common American.

I have been telling my clients to buy now for the past two years says Tiffanie Flagler, owner of Flagler Real Estate in Columbia, SC. Mortgage rates are nearly five percent now and this decreases buying power due to the debt to income ratio being capped on most loans at 37%. The Columbia market is still up yet inventory is down. We are seeing an increase in the Irmo, Lugoff, and Red Bank areas with new home builders starting new communities.

If you are a seller looking to sell your home and find a new one now is the time. Do not wait in this market or you may face the challenge of a limit pool of buyers if interest rates continue to rise. Contact the Flagler Real Estate Team by visiting www.TiffanieFlagler.com and filling out a contact form, phone at 803.917.3894, or email FlaglerRealEstateLLC@gmail.com. We are ready, willing, and able to help you succeed in selling your current home and or buying a new home!