The real estate market is in constant flux. This endless shuffling has homeowners across the country searching for a solution. Should they rent, sell, buy, or simply wait out the storm?
Given the all-time high housing prices, there are those who’ve lived in the same house for decades and are considering selling and cashing out for retirement before their home value drops. Americans are even questioning the upside of owning a house.
Since we never can predict how the market will perform, we’ve assessed the trends we’re seeing out there and broken down four of the biggest housing trends at the moment:
1. Loss of Equity:
For years, homeowners have watched their equity steadily rise. But in 2023, for the first time, anyone with a mortgage saw a decrease of 0.7% year-over-year. This may not seem like a lot, but it's a collective loss of $108.4 billion — or $5,400 per borrower!
That said, should homeowners tap into their home equity now before they lose more? Despite the stress and uncertainty, there’s no rush. As much as the market can decline, it will always bounce back at some point.
The cost of everything’s soaring — consumer goods, produce, travel, gas, and electricity. It can be tough to pay those bills and make each mortgage payment in a timely fashion. And if you have a big family? Forget it, many are living paycheck-to-paycheck.
The phrase house rich, cash poor is a reality for an increasing number of homeowners. Is this the American dream we’ve all been promised? Owning your home yet drowning under such an exorbitant cost of living may be too steep of a price to pay for most people.
3. High Demand and Low Supply :
The housing market has looked like this since Covid-19 as high demand remains a constant in an ever-changing market. Potential homeowners have various reasons for buying their homes — Baby Boomers and Gen Z’s seek to improve their living conditions, while Millennials and Gen X-ers seek stability. Regardless of your age, using home equity to build wealth is something all generations can agree on but is it even feasible these days?
By selling your home and leasing it back, homeowners can get the full equity out of their homes without taking on debt or moving. What an exceptional way to stay ahead of a fluctuating market and save money on outrageously high-interest rates. This gives you leeway to set a budget that covers a stable monthly lease payment because you now have financial flexibility.
4. Interest Rates:
Generally, it’s assumed that owning a home is more economical than renting. But according to a recent stat, from January 2023 to date, it is actually cheaper to rent by an average of 17% — crazy!
So, does this mean all people who own their homes are losing money? Not necessarily, because a sale-leaseback is an excellent option. Essentially, a sale-leaseback blends two common transactions: a home sale and a lease.
We’re all feeling the effects of the current economy and housing market but there are some ways to take control of the situation. Sale Leasebacks are really growing in popularity in the U.S. Unlike a traditional sale when you work with a sale-leaseback specialist, there’s no listing, showing, packing, moving, waiting, or worrying about the buyer’s mortgage approval. You can sell high now and then rent until housing prices are lower.
Purchase of your home can happen in as little as 30 days, and your lease starts immediately upon closing. No matter if you're in the midst of moving to a new home or are finalizing renovations, you can utilize a sale-leaseback to stay put while your dream home is completed.
So, if you’re in between houses or a renovation, using this brilliant solution can help save. Plus, the money you receive from the sale can be used for anything you want — tackle inflation, pay off debt, diversify investments, or plan for retirement.
Many people lack the skills and knowledge — let alone the confidence — to do their own research and take action. But there are expert sale-leaseback advisors and real estate experts out there who are happy to help you to free up your home equity and plan for your financial future.
Working with an experienced sale-leaseback company can allow you to protect your wealth against volatile home values and diversify your investments into income-generating assets such as stocks. More importantly, you have access to cash to use during the times you need it most.
We recommend Truehold, a trusted source and the best provider of sale-leasebacks in the US. Unlike other real estate companies, they’re on a mission to help provide trustworthy financial and real estate alternatives for those who want to access their home equity and stay in their homes.
Let go of the financial stress of home ownership. Reach out to the Truehold team today and continue enjoying the home you live in.