Despite the fact that current homeowners have the highest recorded amount of equity on homes in history, many are reluctant to sell their homes. According to a report from First American, the median amount of time one holds onto a home has risen to 10 years, which is 10% up from 2017.
Let’s take a look at why current homeowners aren’t in a hurry to move to a new place:
Blame the Housing Market
Before the infamous stock market crash of 2008, the median time spent in a single home was roughly four years. Post-2008, that number rose to seven years, as a result of many homeowners being underwater on their home mortgage.
Now, in 2018, the state of the housing market is not exactly favorable. The interest rates are rising, which dissuades homeowners with low mortgage rates from putting their homes on the market. As a result, there is a low inventory of homes available.
Homeowners who were lucky enough to secure a mortgage rate lower than the current average have little incentive to sell their home. Few homeowners see a reason to move if they are going to have to pay more on their monthly mortgage than they currently do. This is especially true if a homeowner is stuck in a poor financial situation, and cannot move because they will not be able to afford it.
Since homeowners don’t have much of an incentive to move, they are most likely looking for other ways to access their home equity.
Lakeside Title Is Here to Serve You!
Lakeside Title provides title insurance and numerous title-related services, all while making sure your transactions and funds are protected and secure. Our processes streamline residential and commercial real estate transactions for lenders, realtors, buyers, and sellers. To learn more, give us a call at 410-992-1070. We look forward to the chance to serve you!