All signs point to the housing market thawing from its Frozen state this Spring. Single family inventory last month was up 7% from 2023 and townhome and condo inventory was up 27%. Interest rates are holding in the mid 6’s with anticipated reductions later this year. Demand is still strong with many buyers sitting on the sidelines over 2022-23 when we saw rates skyrocket. One item I have been paying attention to is the outlook of baby boomers downsizing. Did you know 56% of homes in the U.S. are owned by people ages 60 or older? Over the next 10 years, we should see more supply of some prime properties as sellers cash out and downsize to cope with higher living costs.
Another item to watch is the turmoil in older condominium properties where insurance policies have skyrocketed. Many associations are electing to insure cash value over replacement value for lower premiums, which can have a big effect on whether or not a lender will insure the mortgage. I foresee this becoming more and more prominent over the next year as I have had several condominium owners reaching out about issues with their association and insurance.
If you have a specific real estate need or question, I am always here to chat. And if you are thinking of selling (or buying) in the next 1-3 years, its never to early to start mapping out a strategy so you are in a prime position to maximize your value. Reach out to me via email, text or phone to setup a time to meet.
- Hayley Tomazic
314-229-2009
