With every problem comes an opportunity and today's market is a unique opportunity for homeowners with long tenure and high equity in their existing home. Fort Worth, Keller, Saginaw, Watauga, North Richland Hills, Hurst, Bedford, Euless, Arlington and Grand Prairie are all high demand markets for first time buyers. The chart below shows that homeowners have tremendous equity that can be captured by selling a home, Even homeowners who purchased a home as recently as three to five years ago are finding that their gains are large enough to fund another home. With the historically low rates today most are paying much less than they expected for a newer, larger and more energy efficient home. But it requires the assistance of someone who understands the market, the home availability for the house you want and the expertise in marketing your current home and financing your acquisition on favorable terms. Sound interesting? Contact me and we'll see if it makes sense for you.
Current Owners Are Starving First-Time Buyers of Options
November 4, 2019
The average American homeowner has spent 13 years in their home, a much longer stay than the average eight-year homeownership tenure in 2010, according to a new Redfin analysis. But as homeowners hold onto their properties longer, it's becoming more difficult for first-time buyers to find a home to purchase, the analysis shows. “If people aren’t moving on, there just are fewer and fewer homes available for new-home buyers,” Redfin Chief Economist Daryl Fairweather told The Wall Street Journal
In some metro areas, homeowners are staying put more than eight years longer than they did in 2010. For example, homeowners in Dallas, Houston, San Antonio, and Salt Lake City have the longest tenure in the nation. “In Dallas, there are many neighborhoods that were built in the 1950s and 1960s where most of today’s residents are still the original homeowners,” says Redfin real estate pro Christopher Dillard, who works in Dallas. “Because prices have been going up and folks are gaining more and more equity, it’s hard to justify selling when there aren’t many—if any—affordable options.”
Homeowners ages 67 to 85 are staying in their homes the longest. In a separate report from Freddie Mac, researchers blamed that trend on a shortage of 1.6 million homes. The median homeownership tenure is highest in Salt Lake City. Inventory has also plummeted 59% from 2010 to 2019, Redfin’s report notes.