The Two Biggest Issues The Housing Market is Facing Right Now
/What a ride the last few years in real estate have been! While buyer competition has lessened, that doesn't necessarily mean that homes have been easy to come by -- or get into. But WHY?
Let's break it down: the BIGGEST challenge the housing market is facing overall is how few homes there are for sale; AKA "low inventory" continuing to be at play, making us collectively recall those fundamental supply and demand economics classes of our youths. Economists explained that the root causes of today’s low inventory are due to two main factors:
1. Rate-Locked Homeowners
According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4%. But today, the typical mortgage rate offered to buyers is over 6%. While that's still a great rate if you look back historically, it's quite a difference from the exceptionally low rates we saw over the pandemic. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as being rate-locked.
2. The Fear of Not Finding Something To Buy
The other factor holding back potential sellers is the fear of not finding another home to buy if they move! Worry about where they'll go has left many would-be sellers paused on the sidelines as they wait for more homes to come to the market. It's definitely a bit of a catch-22 and creating a standoff. It's like being ready to play musical chairs, except no one has started playing the music.
What Does This Mean for You?
Combined, these two issues are keeping the supply of homes for sale lower than pre-pandemic levels. So if you want to sell your house, today’s market is absolutely a sweet spot that can work to your advantage. Just be sure to work with a local real estate expert (eh hem), so you can learn how to put your current equity to work and keep the cost of your next home down!
Feb 2023 RMLS inventory stats
TWIN TEAM HISTORY!
Happy Women's History Month
Women's History Month began as a national celebration in 1981 when Congress passed a law requesting the President proclaim the week beginning March 7th of the following year as "Women's History Week". A few years later, in 1987, Congress passed another public law designating the month of March to celebrating women's history and the contributions women have made to the country, history, and society.
Being a woman-owned and operated business ourselves, we're excited to share our current team's history with you! Kick back and enjoy the Twin Team origin story:
Katie Fracasso
Katie is the Twin Team's pioneer! She got her real estate license in 1996 and has seen and expertly navigated nearly every iteration a real estate market can have ever since. With a passion for renovation projects and interior design, Katie enjoys helping clients transform their homes and the satisfaction of seeing their amazement at the finished product. When not working, Katie enjoys spending time with her husband Steve and their dog Brady, traveling the world, and getting over to the Oregon Coast.
Jennifer Raynak
Katie's twin sister, Jennifer, joined real estate forces a couple of years later in 1998, marking the amorphous beginning of The Twin Team. After a decade working in HR, she quickly showed an inherent knack for real estate and is an absolute force to be reckoned with when it's time to advocate for our clients! When not overseeing the team, Jennifer can be found spending time with her dog Tater, traveling all over the world, and also spending time at the Oregon Coast.
Missi Clements
Missi joined the team in 2016 and is constantly learning and analyzing the market in general whilst paying close attention to all team happenings and details, ensuring nothing gets missed. When not making dad jokes or silly word play, she can be found hanging out with her long-term partner Shane, their two dogs Olive and Foster, tending to plants, enjoying the local vegan food scene, and volunteering with one of the nonprofits we support each year, One Tail at a Time - PDX.
Julie Studenroth
Julie has been a licensed real estate agent since 2005 and seamlessly joined The Twin Team in early 2020. Originally hailing from Massachusetts, she moved to Oregon over 20 years ago and has called it home ever since! When not mama-bearing and crafting the best possible outcome for our clients, Julie loves getting outside to enjoy the PNW beauty -- taking it in alongside her husband and two kids by way of hiking, camping, skiing, and (you guessed it!) trips to the Oregon Coast.
Lita Batho
Lita Batho joined the team in early 2022 and quickly proved that her calm presence isn't an indicator of her competitive nature -- she loves to WIN. Her background in art gives her an observant eye for the aesthetics of a home, while her tenaciousness ensures that you have someone loyal in your corner. When not helping our sellers, you’ll find Lita cultivating an ever-expanding flower garden, doing home improvement projects, or walking in her favorite neighborhoods.
