👨‍👩‍👧‍👦 Need More Space? You're Not Alone 🎈

Let me tell you something Reader,

I know you’ve heard the saying "damned if I do, damned if I don't." Well … that’s me right now, diving back into the housing market after just buying a house. It’s like trying to choose between two different weddings you don’t want to go to on the same weekend …either way, you just want to be home.

It was just two years ago when we found something we could call home. The price was right, we liked the area, and it was good enough for a family of three. As much as I adore my six month old princess, her arrival and the desire to care for my aging mother in-home, meant we needed more space! So, the man who once took pride in renting his home and only buying investment properties, is back looking for a house.

Oh … and everything is even more sh*t than the last time, which was also sh*t.

Navigating the Sh*t storm that is House Buying Today

The inventory out there is low, like the amount of sense Kanye makes in an interview low. It feels like every homeowner is clinging onto their houses, not wanting to give up their 3% mortgages in a land where 6% is the new norm. I can’t blame them, as a monthly payment on a $600K home leaps from a cozy $2,529 at 3% to a stomach-churning $3,597 at 6%. To make it worse, I’m also not selling this house to buy another one with my 3% mortgage.

For several years, in the U.S., we've been under-building homes. Given our population growth, we should have been building more. The lack of homes for people, in addition to a number of other COVID and economic factors, are now making things hard. These roadblocks will exist for a while until it resolves itself. It's a case of "too many people, not enough houses."

Selling a House Sucks Too!

Our super low interest rates were a one time phenomenon that have faded, like Desiigner’s Panda (I really loved that song). We need to let them go, and not expect them to come back … since they shouldn’t have existed in the first place.

The world is different. 6-7% is our reality. When we all accept it, we’ll feel better and can carry on.

What about all the equity you've built? Didn’t all the houses go up in value?

Yes … but because your new $600K home will cost an extra $100 a month …does the equity matter that much?

Survival Guide: Adapting to the New Normal

Our new reality is now. The rate is the rate. Focus on affordability and long-term plans for your decision making.

Don't hold your breath waiting for rates to drop. Instead, adapt and find ways to make this work for you. From learning new tactics for negotiation to asking the seller to help pay down the mortgage, there are ways to lessen the blow. Hell, introductory rate mortgages are making a comeback, offering a few years of lower payments before things get real.

Remember, with high rates, you've got a stronger bargaining chip when it comes to price. The high payments will eventually impact house prices, so it might be your chance to get a deal.

It's a tough gig, but with some savvy moves and a good dose of patience, we can navigate this together. I'll keep you posted on my own journey and any golden nuggets of wisdom I stumble upon.

Till next time.

Your Housing Market Guru, Mr. Peters

P.S. I’m one of 25 black real estate investors highlighted in the “Acres” coffee table book. Check this book out and keep your home buying/selling hopes alive.