Housing inflation impacting the buying and selling markets
CAPE GIRARDEAU, Mo. (KBSI) – A roof over your head that is a safe place to sleep is something all of us want in our lives. However, just like everything else in our current economy, inflation is making that goal more expensive and harder to attain. Many people, especially those looking to buy homes or land are concerned this could lead to a recession.
“We just sold one of our investment properties and had we been ready to sell six months ago we probably would’ve seen about 5% more on the sticker price than what we ended up getting for it,” said Kelly Gray, a home buyer in Cape Girardeau.
“Since 2020 the beginning of 2020 COVID affected a whole lotta things and one of those things was logistical chain networks of delivering supplies,” said Stephen Schott of eXp Realty. “So, in how the housing market has been affected over this last two and a half years it has inflated quite a… quite a lot.”
Looking back to the 2008 recession, loans were given out to the majority of people who applied. Fast forward 14 years and that’s changed.
“But the underwriting process and in the preliminary process to get approved to purchase a home has been tweaked to the point that it won’t allow people who can’t afford to buy a house to purchase one,” continued Schott.
Banks are now stricter on approving loans and interest rates are increasing. Potential buyers also don’t have as many options as they would like because there are fewer homes for sale.