CAPITAL REGION, N.Y. (NEWS10) — If you’ve been having a tough time buying a home, you are not alone. Not by a long shot. NEWS10’s Anya Tucker spoke with a local realtor who provides insight into why it’s not just the pandemic that has your home buying dreams feeling more like fantasy than reality.
Real estate agent Brian Sinkoff compares today’s housing market with holiday shopping — everyone wanting that out of reach gift.
“It’s like a Cabbage Patch Doll in the 1980s, right? Nobody had them and everybody wanted them,” says Sinkoff.
But instead of dolls, it’s homes that everyone wants. A shortage of inventory has caused a sharp rise in listing prices.
“If you are a buyer in this market, you don’t have a lot of wiggle room. There’s not a lot of negotiating. If you don’t like the terms that the seller is putting forth, guess what? The seller looks at the other five offers in that pile, and the seller will accept one of those offers,” he added.
One home can have several bidders, and when that happens, the offers can swell well over the original asking price. Sinkoff says the pandemic is just one thing to blame.
He lists some reasons:
The first is low interest rates, which helped ignited a housing sales boom.
“So, there’s an urgency with buyers wanting to buy because they feel there’s going to be a good deal.”
Next on the list is a seller’s fear.
The pandemic caused many people on the fence about selling to hold off if it means opening their homes up to strangers. Potential buyers may be highly motivated to spend top dollar, but if you’re also the seller, where do you go after cashing in when there are only a few options?
“So, I [sellers] am going to be stuck in the position that the buyers are stuck in buying my home.”
But Sinkoff advises that bigger money in hand may in the end, pay off and be worth a move.
And he says Spring may open up more opportunities.
“As people get more comfortable, more people get vaccinated, people mentally feel better about what’s going on I think we are going to see more houses.”