With home prices rising current homeowners are looking to ditch their homes are in for a pool of cash. But those who are looking to buy need to come up with a lot of it. And they might not be able to.
Not only are home prices up right now, but there’s also a 95 percent chance they will increase by 2020, says a study from insurance company Arch Capital Services. Every state is projected to have a boost in home growth in the next two years.
“Fewer people are selling starter homes to trade up to bigger houses, and that’s a trend that will continue now that the majority of homeowners have lower mortgage rates than they could get on a new loan,” says Arch Capital Services executive Ralph DeFranco. “With fewer new starter homes, the most likely scenario is continued [with] rapid price growth of existing homes.”
Did the Great Recession hurt our homebuying chances?
Millennials are becoming the biggest group of homebuyers. They want to buy, but they just might not be able to afford the scraps left behind by more wealthy, interested buyers. There simply isn’t enough supply to meet the demand.
Previously, homeownership rates were higher than the desire to buy, according to insurance company First American Financial…
