High demand in today’s housing market have left buyers with few options and many are purchasing homes sight unseen to beat out competitors. Home sales in 2020 reached 5.6 million and since the start of the pandemic have hit over 1 million homes sold. That said, many homeowners who were in mortgage forbearance will have the assistance ending soon and Zillow is reporting 25% of their homes will begin the foreclosure process, forcing the homeowners to sell and seek something more affordable.
There is a decrease in the number of new homes and starter homes (1,400 sq ft or less) being built. This and increased rent coming back is making it difficult for those starting out in their housing lives. It is said that the United States is short by 5 million homes. This shortage has sparked a new industry of alternative dwelling units and has made miniature homes popular.
Those of retirement age are deciding to apply for reverse mortgages. This means they sell their home now but can still live in it for years to come and the equity they have in their home is paid to them, instead of having to make mortgage payments.