Broker: Higher mortgage interest rates not slowing demand for homes

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(Photo supplied/ABC 57)

As we get into the month of April, we get into the busiest time of the year for people to try and buy a home.

Last year it was a sellers’ market with not many homes on the market but tons of people looking to buy a home. Greg Cooper, the founding broker of Compass of Indiana, tells Inside Indiana Business that this year will not be any better.

“We have such an overwhelming demand. So many people are still trying to get in homes,” Cooper said. “We had a good 12 to 15-year run. Jobs were good for most people who had some disposable income. But, the reality is inventory is so tight right now.”

Cooper says at one people a few years ago there was 37 months worth of homes on the market, meaning supply was high and demand was low. Now there are barely four weeks of homes on the market available to sell. In one instance he said his firm had a home sell 28 hours after it was listed for 31-percent over the asking price.

One thing he says is making the home buying process difficult for many people are institutional buyers.

“Inflation has driven rents up so high,” said Cooper. “We are an incredibly attractive place for institutional buyers to come in, pay cash, and then lease these homes. We have an incredible level of empathy for anyone trying to buy a home right now. It’s tough.”

Cooper doesn’t see higher mortgage interest rates from the Federal Reserve slowing down demand for buying a home anytime soon either. Still, he has confidence that as we get into the later summer months things could slow down.

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