Lock-ins and Break-outs in Real Estate
When I was teaching, we talked about lock-ins and fire drills in the same breath – a lock-in was a was a way to block doors, and prepare students for dangerous intruders in the school. Safety. It’s an unfortunate conversation, but essential. Today I hear the phrase lock-in all the time, but it’s less about danger, and more about being stuck. Homeowners lucky enough to buy or refinance in the last few years are sitting on 2-4% interest rates. This makes mortgage payments, especially for first time home buyers, much easier to swallow.
Consumer Affairs shows most Americans moving 11.7 times in their lifetimes. How about you? How many times have you moved? The US Census Bureau shows moving rates have declined from 12.8% in 2021 to 12.6% in 2022. Matthew Walsh of Moody's Analytics notes that while some homeowners are starting to sell due to life events, it’s not shaking the overall inventory deadlock any time soon.
It begs the question - how do you sell a house when you have that golden interest rate? And how to do you even break in when you’re renting, or relocating to the area? These are the conversations I am having every day.
Short of having you read The Lock Artist, a great novel by Steve Hamilton about breaking into safes, I’m here to offer real-life strategies to navigate this housing deadlock, and gamify your way into a home you can call your own. I’ll focus this month on buyers, and next month on sellers.
Strategies for Buyers to Break In
1. Expert Guidance: Work with a local real estate professional for insights into your market, and the skillset to guide you through it with grace.
2. Financial Readiness: Get pre-approved for a mortgage. Ask about programs unique to your life circumstances. This can be a huge tool in your kit.
3. Flexibility: Be open to different locations and property types to expand your options.
4. Timing: Monitor market trends closely and consider less competitive periods for buying.
5. Long-term View: Consider the investment potential of your purchase beyond immediate needs.
In navigating this unique time in real-estate, proactive planning and informed decisions will be key to achieving your homeownership goals effectively.
