Housing market: More competitive than ever before
JACKSON, Miss. (WLBT) - You may have noticed houses up for sale one day are snatched off the market within minutes. Real estate agents in the metro said that’s pretty much the case everywhere.
”It’s been unlike anything I’ve seen previously,” real estate agent Emily Ferguson said.
“You would list a house and get 20 showings, 19 offers, people wanting to give all kinds of incentives. People are writing letters, explaining their situation and explaining why they love the house,” Ferguson said.
So, why is it so hard to get a house? Agent Eddie Stuart said inflation and demand for homes are to blame.
“I think people are realizing that as inflation increases, rent prices are going to increase,” Stuart explained. “So, it only makes sense to have something if your mortgage payment is less than a rental every week, every month, and it just makes more sense to own a house than to pay 100% on something you have never done.”
According to Stuart, a house in the metro in 2021 stayed on the market for an average of 12 days. Now, that timeline has been cut to an average of five days.
Ferguson said she’s seen that timeline go even faster.
“Now, it might be on the market 24 hours, with, instead of 19 offers, we’ll get, like, three offers, there’s still that competitiveness because the inventory is still really low,” Ferguson said.
But low inventory isn’t because of a lack of buildings. Stuart said it’s because more renters are wanting to switch to owning.
Stuart said because of the demand, mortgage rates will stay up as long as demand continues.
“As the mortgage rates increase, it’s just faster paced. And that’s what the interesting thing is, even when interest rates were at three-and-a-half percent, we’re still seeing the rate of days on the market cut in half, today,” Stuart explained.
Stuart is advising future home buyers to sit tight, build your finances, and prepare early.
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