Eric’s presentation illuminates the components of housing supply and how it impacts prices.
The Housing Shortage has been one of the most popular stories in real estate and the economy over the last year. You see headlines about the lack of inventory driving up home prices everywhere you look. Many said home prices would not fall because the inventory situation was so tight. But now, with many indications that home prices are already falling, the housing shortage narrative is feeling a bit shaky.
In this video, I will explain the true inventory situation in the US housing market and what it means for home prices over the next 6-12 months.
Given the abrupt increase in mortgage rates this year, the possibility of a buyer assuming a seller’s lower-rate fixed mortgage could be appealing. This would only be possible on existing (not new) homes and where the seller is not wanting to port (transfer) their mortgage to a next home. The buyer also needs enough cash to make up the difference between the existing mortgage and the purchase price, or they will need to increase the loan size at current rates.
A negative is that the seller can be held responsible if the buyer defaults in the first 12 months. You can read more about the options in Canada here and in the US here.
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