I hear it almost every day; “Tori, I would consider moving if I could find somewhere to move to.” The purchase market is almost at a standstill, with very few new listings entering the market. And the rental market isn’t much better, with rental rates constantly increasing. How do we overcome this obstacle? Consider a “home trade”. .
Way, way back in 2010, real estate inventory levels were at historic highs. That is exactly the opposite of 2022, as there are very few homes on the market for sale in the greater Winston-Salem area. Interestingly, the problem of 12 years ago caused similar results to the challenges facing today’s market. In 2010, sellers couldn’t sell their homes. “Bridge loans” weren’t available, as seller’s equity was much lower than today, and homeowners weren’t comfortable potentially making mortgage payments on two houses at a time. So the market became very slow, waiting to see if buyers or sellers would, or could, make a move.
According to the Statista Research Department, “The value of homeowner equity in the United States increased from approximately 8.77 trillion U.S. dollars in 2010 to approximately 21.1 trillion U.S. dollars in 2020.” That increase in equity represents 13 trillion dollars in increased leverage that buyers have in today’s market.
How do we break the stalemate? Consider a home trade. It sounds more complicated than it really is. Basically, two homeowners just buy each other’s homes. Standard offer to purchase contracts are completed, and each party pays their own fees. Dates for due diligence periods mirror each other, and the parties have the right to conduct standard inspections. Closing happens simultaneously.
How do we get this done? Savvy Realtors with large spheres of influence network to create “home trade” opportunities.
Sellers want to sell and CAN afford to buy, and are willing to do so if they can find the right property.
If you are looking to sell your home and buy a new one, let me know. There are many creative ways to find the right new home which are over and above the traditional listing avenues.
Reach out anytime! I’m at all the usual places; Truist Field watching HK play soccer, FCDS, CP3, Wake Forest, and, of course, on the golf course. Happy for the return of Spring and 9 and wine!
Cheers to birdies, sunshine, the Deacons, and equity!