BROUSSARD, L.a. — The housing market — currently a hot topic in Acadiana and the rest of the country with mortgage rates on the rise, supply chain issues leading to a lack of builds on the market, and homes that experts say are selling well above what they are worth.
If you're buying or selling a home right now, chances are this isn't news to you.
“It’s a tough situation right now, it’s usually taking us about 6 or 7 months to get a project done now, where it used to be three months and it’s all because of supply chain issues," said Jay Castille, a business owner with 22 years of contracting experience and 40 years of construction experience. "Every item inside the home is delayed — electrical, plumbing, flooring, you name it, it’s delayed.”
Local experts told KATC that home sales are down per unit while the dollar volume skyrockets.
“The for-sale signs that are coming in the yard, that’s our supply, our available homes for choice — that’s down 17 percent — the homes that are going under contract, meaning the buyer and the seller are having a meeting of the minds, that’s down 7 percent now," said Acadiana realtor Robbie Breaux. "While that seems like it’s bad that they’re down now, the spread between them is 10 percent — that’s 10 percent fewer homes that we didn’t have to begin with, even last month.”
On top of this, lenders said interest rates have gone up so much they're at a 12-year high.
“The federal reserve is hedging inflation and secondly the federal reserve has changed their position on mortgage-backed securities," Jesse Regan, senior mortgage lender at Preferred Lending Solutions told KATC. "They are no longer purchasing them, they are selling them.”
While this may sound scary, he said it's not as bad as it could be.
“Before 2010, the rates were in the 6th and 7th percentile range, so that leads us to believe that there may be room for the rates to increase even more, so now is still a great time to buy," Regan said.
------------------------------------------------------------
Stay in touch with us anytime, anywhere.
To reach the newsroom or report a typo/correction, click HERE.
Sign up for newsletters emailed to your inbox. Select from these options: Breaking News, Evening News Headlines, Latest COVID-19 Headlines, Morning News Headlines, Special Offers
