It’s a seller’s market across much of the U.S. thanks to brisk growth in home prices and low for-sale inventory in many areas. While that’s great news for homeowners who want to enjoy the financial benefits of increasing equity—such as refinancing to lower mortgage payments or even take out cash—it’s bad news for buyers, many of whom are afraid to make the largest investment of their lives at what could be the apex of another real estate bubble.
In fact, though the Fall 2017 Modern Homebuyer Survey from ValueInsured revealed that 79 percent of homeowners believe now is a good time to sell, only 57 percent of the 66 percent who are interested in selling think they’ll actually be able to do so within the next three years.
“This dichotomy is caused by greed and fear,” Joe Melendez, founder and CEO of ValueInsured, explained to Reward Expert. “On the greed side of the equation, people realize that prices have recovered, and in some markets, are at all-time highs. However, they also realize that if they want to buy a new house, it’s going to cost them more than the one they just sold. So, they decide to just stay put. That’s the fear element.”
Fortunately, Melendez says there is a way to take fear out of the equation: ValueInsured +Plus Down Payment Protection.