The housing market has been a roller coaster ride ever since the pandemic. The higher mortgage rates and higher home prices are not making it a very easy task when it comes to purchasing a home. Ali Wolf, Chief Economist at Zonda says that there is light at the end of the tunnel.
“Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available,” says Wolf.
This is very good news that smaller homes are becoming the norm. According to the National Association of Home Builders demand for home size is not as high as it once was due to the increase in interest rates. The market will have smaller, more affordable homes coming on to the market for the rest of the year.
The end of this year and the beginning of next year will not only see resale smaller homes but builders are now offering newly built smaller homes. “It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area,” says Mikaela Arroyo, Director of the New Home Trends Institute of Johns Burns Real Estate Consulting.
This is great news for buyers who are in the market and want or do not mind a smaller home. If you are in the market for a new home, contact your local sales agent who can help you with your home purchase.
