Why is it so hard to find affordable homes?

This is a question I get asked all the time. Not long ago I had a couple looking for a home in the $175,000 range. They had very specific “wants” and I was doing my best to meet that list. One day they asked “why can’t we look at more than one or two homes at a time?”. I explained the limited number of homes available and how their criteria affected what we had to look at. They didn’t want to live in this area, they only wanted move in ready, a one or two care garage, space for a “man-cave”, and a few others.  With only a half dozen homes on the market at any one time and having already seen 3 or 4 of those, we were limited to one or two new listings each time. Add to that, their restrictive pre-qualification value and the new car payment and we didn’t have a lot to work with.

Right now, there are very few homes in our market under $225,000 and that number is climbing almost daily. Our absorption rate, the supply of homes available related to how many are sold each month, is only a month or two under the median sales price of $325,000. Homes that need remodeling and selling in a lower price point are being bought up by investors who fix them up and instead of selling them, rent them. This further reduces the number of available homes.

I wish there were better news, but for now, that’s the way it is. If you are interested in your home value or what may be available to purchase, please give me a call. Neal at 801-244-5452.

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