Andrew Shader Details How Housing Fallout Could Create Better Prices for Homeowners
The housing fallout is raising concerns for some, but it could ultimately mean good news. Andrew Shader offers his expert view on the emerging situation.
FORT LAUDERDALE, FLORIDA, UNITED STATES, January 5, 2023/ EINPresswire.com / -- Real estate expert Andrew Shader recently expressed several thoughts and predictions relating to the housing fallout and how it will impact prospective home buyers. He explains why he believes many of them will come out ahead thanks to falling home prices.
When asked what led to the falling market, the long-time real estate investor points to COVID-19 and the resulting supply chain issues as major factors. According to Mr. Shader, real estate prices soared during the pandemic while loan rates were at an attractive 3% or lower. The drawback was that supply chain snags made it difficult to source construction materials. Home completions were often pushed back, and so were move-in dates.
All of this has created something of a ripple effect that is impacting the housing market today. For one thing, homeowners who easily qualified for a low-interest mortgage during the pandemic may not be able to get a loan at over 6%. If they do qualify, they will likely be looking in a lower price range.
Now, builders are sitting on homes that were once claimed but now don’t have qualified buyers. They need to unload this inventory quickly. To do that, many of them are significantly lowering prices. Currently, buyers may be able to find newly built homes that have been discounted by thousands of dollars.
Mr. Shader says the situation is undeniably unfortunate for the original homebuyers. Many of them have a difficult choice: either pay up to $2,000 more monthly due to high interest rates or back out of the deal. Because backing out could mean losing a large deposit, neither option is attractive.
Even though neither the builder nor the buyer is to blame, the homes still have to be sold. Banks have already loaned out money to build the homes. Builders must repay those loans and, ideally, make a profit — although some may simply be attempting to mitigate their losses. Thus, the homes in question get listed at a much lower price.
Now, prospective buyers have a great opportunity to buy at a lower price. However, this prospect is limited to those who are able to qualify for these higher-interest mortgage loans and afford the payments. These buyers will also need to consider whether they can keep up with their payments while they wait out opportunities to refinance when interest rates inevitably drop. He strongly urges anyone considering this to do their due diligence to avoid finding themselves in an untenable situation.
About Andrew Shader
Andrew Shader is a Florida-based real estate professional with a proven ability to find properties with exceptional promise and then make the necessary improvements until they meet their full potential. In his downtime, Mr. Shader enjoys spending time with friends and playing sports.
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