Real Estate Market Update

The Current Real Estate Market is Pretty Messy at the Moment

There are a lot of things happening in our real estate market in July/August that people seem to be ignoring. Maybe not ignoring but things people hope if they don’t talk about it, it may go away. Let’s start with the obvious. Interest rates are killing the market. If you don’t think they are hurting real estate transactions you may want to get out of real estate. The next is our crazy lack of inventory. Blame it on what you want but there is no argument that the 10+ million people coming into the country are living somewhere. Are they living in the starter homes? The next is large investment companies buying up residential properties to rent out for short term or long term periods. Then throw in the new NAR commission lawsuit and you have confused buyers and sellers with no one wanting to pay anyone to buy or sell home.

The Current Real Estate Market is Pretty Messy at the Moment

There are a lot of things happening in our real estate market in July/August that people seem to be ignoring. Maybe not ignoring but things people hope if they don’t talk about it, it may go away. Let’s start with the obvious. Interest rates are killing the market. If you don’t think they are hurting real estate transactions you may want to get out of real estate. The next is our crazy lack of inventory. Blame it on what you want but there is no argument that the 10+ million people coming into the country are living somewhere. Are they living in the starter homes? The next is large investment companies buying up residential properties to rent out for short term or long term periods. Then throw in the new NAR commission lawsuit and you have confused buyers and sellers with no one wanting to pay anyone to buy or sell homes.

High Interest Rates: A Major Hurdle in The Current Real Estate Environment

Interest rates have surged in recent years, making mortgages more expensive and pushing many potential buyers out of the market. Starter homes are now too expensive especially if they need work. Of course this has a ripple effect on sellers as well, who find fewer interested buyers and longer times on the market. Orson Hill Realty, led by Danny Skelly, understands the challenges that come with these fluctuating rates and is committed to helping clients navigate these turbulent times. By offering expert advice and innovative strategies, we strive to make the home buying and selling process smoother despite the high rates. The pool of potential buyers has shrunk significantly in recent months. Especially with inflation rising as well. People just don’t have money to spare.

The fact many home owners are locked in a mortgage in the 3’s or even lower, is also having a negative impact on people wanting to move to another home when they will need to get a new mortgage in the 6’s or maybe even the 7’s.

Inventory Shortage: A Growing Concern for Buyers and Sellers

The lack of available homes is another critical issue. The influx of new residents combined with existing demand has created a severe shortage. Orson Hill Realty is on the front lines, assisting clients in finding the best opportunities even in a tight market. Danny Skelly and his team use their extensive local knowledge and connections to uncover hidden gems and off-market properties, providing clients with options they might not find elsewhere.

Impact of Large Investment Companies and What They Are Doing to Inventory

Large investment firms are buying up residential properties at an unprecedented rate, reducing the number of homes available for traditional buyers. These companies often convert properties into rental units, both short-term and long-term, which further tightens the market. Orson Hill Realty and Danny Skelly Real Estate remain vigilant, working tirelessly to secure properties for our clients before they are snapped up by these corporate giants. Not that there is anything wrong with corporations buying up real estate (they have every legal right) it is just a fact investors are skewing the market.

NAR Commission Lawsuit: Creating Confusion for Real Estate Agents and the Consumer

The recent lawsuit against the National Association of Realtors (NAR) concerning commission practices has added another layer of complexity. Buyers and sellers are increasingly unsure about commission structures, leading to hesitation and uncertainty. At Orson Hill Realty, Danny Skelly and his team provide clear, straightforward guidance to demystify the process, ensuring clients understand their obligations and options when it comes to commissions.

Navigating the Real Estate Market with Orson Hill Realty

Despite these challenges, Orson Hill Realty, led by Danny Skelly, remains a beacon for those looking to buy or sell property in this turbulent market. Our deep understanding of the local real estate landscape, combined with our dedication to client satisfaction, sets us apart. Whether you are a buyer seeking your dream home or a seller looking to maximize your property’s value, Orson Hill Realty is here to help you every step of the way.

FAQs

1. How are current interest rates affecting home buying?
Interest rates have risen significantly, making mortgages more expensive and reducing the buying power of many potential homeowners.

2. Why is there a shortage of homes on the market?
Several factors contribute to the shortage, including an influx of new residents, increased demand, and large investment companies buying residential properties for rentals.

3. How does the NAR commission lawsuit affect me as a buyer or seller?
The lawsuit has created confusion around commission structures, but Orson Hill Realty provides clear guidance to help clients understand their options and obligations.

For more information, visit Orson Hill Realty and Danny Skelly Real Estate to see our available properties and expert real estate services.

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