There is a massive “struggle” going on for both homebuyers and sellers across America to close deals or make money.
“The challenges facing home buyers and sellers right now are probably the greatest ever,” real estate agent Dolly Lenz told Fox News Digital. “It’s a battle for every buyer and a battle for every seller… they really have to look and say, ‘What am I doing?’ Do I find it hard to just sit where I am and just wait and see? Is it difficult for me to buy something?”
“What fight am I willing to take on? And every family has to sit down at the dinner table and decide that,” she continued. “It’s a struggle and people are really suffering. So overall it’s not a good time for real estate.”
Recent data from mortgage buyer Freddie Mac suggests monthly expenses for US homebuyers are up nearly 20% year-over-year. Lenz’s daughter and managing director of the brokerage firm described the current housing landscape as “a tale of two cities” and joined the warning calls around a difficult real estate market with people “plagued” by high prices.
“We’re still doing business because [clients] have cash. And as they say, cash is king,” Jenny Lenz also told Fox News Digital. “But apart from the very, very high quality products, we also see people who are quite shy. And once again, it is the first-time homebuyer who suffers the most.”
According to the mother-daughter real estate team, a mix of ever-changing insurance coverage and the Federal Reserve’s recent rate hike, which is pushing 30-year fixed-rate mortgage rates to over 7.6%, comes at a time when Americans are being frustrated by high food and… be “plagued” by gasoline prices . They both argued that recession-like effects kept homeowners in place and thus impacted the US market and related sectors.
“Sixty percent of the country has a mortgage rate of 4% or less, so it really doesn’t make sense for them to sell if they want to increase or decrease their mortgage because their monthly payments will be the same, if not more,” he stressed jenny
“None of these homes are coming to market, which means there’s a lack of inventory, which means high prices, which basically means golden handcuffs for everyone,” the chief executive added.
“Think about how this affects the economy as a whole,” Dolly interjected. “So there are no doers taking action. There are no architects… people don’t buy carpets and they don’t buy new furniture… an endless list of how this is affecting the entire economy.”
While Dolly admitted it’s “not the absolute worst” real estate market she’s worked in, it’s the worst for daughter Jenny.
“People can’t get mortgages. Insurance is getting astronomically expensive,” Jenny said. “Highest average house price ever. So we get all these things at the same time.”
In certain states like Texas and Florida, where there is no individual income tax, buyers and sellers may be more successful.
“Migration trends will make a big difference,” Dolly noted. “After SALT is gone, people will not be able to deduct their property taxes, state and local taxes. So it’s a very expensive thing. Now they eat the whole nut themselves because they can’t put it down.”
In metropolitan areas like New York City and San Francisco, renting has become more expensive than buying a property, the two warned.
“All these places where the crime rate is at an all time high but the cost of living is even worse, that’s absolutely ridiculous,” Jenny said. “People say, ‘These mortgage rates are so high, these prices are so high, I’m still going to put my toe in here, even though just a year ago I could have bought a bigger house, a more expensive house, because the rent is just like that high.'”
They also warned buyers against making too many concessions and advised them to be “flexible” during the process.
“A lot of our buyers say to us: Look, I really want this house, so as an example I’m waiving my right to view it. And we don’t think that’s a really good idea, because when you do that, you don’t know how big the pot is that you’re going to have to eat up,” Dolly said.
“You really have to keep your eyes peeled,” Jenny added. “You have to be ready with the mortgage and a letter of acceptance if you can get one at all, and really ready to go out and buy the house because it’s really tough out there.”
Although these factors represent a “negative” market outlook for the Lenzes, they place individuals on a duty to find their own optimism.
“We are currently in a mild recession. I think it’s getting worse between Fitch, insurance, gas prices and everything that’s getting so expensive,” Dolly said. “And that is not good. This is really a sign that the economy is not moving forward.”
“People have problems and we hope so [the Federal Reserve] “We can keep interest rates low so we can have a great economy,” Jenny said, while Dolly added, “and let people navigate and have some options.”
Lenzes’ best advice for house buyers and sellers right now? Be patient and do your research.
“Real estate is local and hyperlocal. “What goes on in a market can be very different than a market that appears to be next door but is only a 45-minute drive away,” Dolly said. “So do your homework there. Don’t just bid on houses. Asking prices for homes do not reflect value.”
“You have to watch the market, I would say, for a couple of months to see what’s going on, what’s selling, how long the sale is taking, and then have an informed offer for the property that it is, and at the same time.” “Try to get the lowest possible mortgage rate,” Jenny interjected.
“All the balls in the air at the same time and that’s what you have to do,” said the founder of Dolly Lenz Real Estate. “And if you have good credit, you will most likely be successful. You will get this house.”