(WHTM) — Mortgage rates are finally taking a breather from their big run-up the past year. But, that is not helping a lot of homeowners, because they are finding almost no homes for sale.
There is some hope for frustrated home buyers. They are struggling to find a home in this time of high mortgage rates and higher prices.
“We’ve kind of outgrown our own home. Our one-year-old, he’s rambunctious and he needs a little bit more space,” one homebuyer said.
They are encouraged by the latest figures, showing home prices falling slightly in February, for the first time in 10 years. The median price nationwide is now at $363,000, which is down 2.5% from one year ago, as the shaky economy takes a toll.
But, the newest problem for buyers like these is a lack of inventory, with so few sale signs everywhere they look.
Real estate agent Michelle Sloan states low inventory means he is still getting multiple offers despite higher mortgage rates.
We have a double whammy. We have very little inventory, very few homes to actually purchase!” Sloan said.
In the past few years, you couldn’t make an offer on a house without facing stiff competition from five, 10 maybe 15 other buyers.
The problem is that people are not selling their homes, because they are comfortably locked into 3% and 4% mortgage rates. they want to take on a much higher rate in a new home.
“First-time home buyers are really struggling right now!” Sloan said.
Sloan also says if the economy continues to struggle this year, or layoffs increase, we will see less competition and lower prices by this fall, but that is little help now for frustrated buyers.
Sloan said eventually people will retire or move for work, and you should be able not to find a home, so you don’t waste your money.