Existing home sales in September were the lowest in 14 years, according to data released Wednesday by the National Association of Realtors. The Federal Reserve’s Beige Book, also released Wednesday, includes anecdotal hope for the future of housing. The Fed notes that housing inventory is expanding across the country, with the Richmond Fed specifically citing officials in Virginia, which is seeing an increase in “overpriced and less-than-ideal homes coming onto the market.” mentioned.
There are some problems with the house Corita Stull currently rents in Baltimore, Maryland. Go to the toilet in the only bathroom. In addition to regular flushing, we often have to flush with a bucket,” she said with a laugh.
Stull is a special education teacher and single mother with four sons at home. The house, including the toilet, is all broken and is about to be put up for sale. And even though Stull says he’s not the fixer-upper type, he’s hoping to buy one.
“We have to find our place, and that is the fixer-upper in this market,” she said.
Jonathan Miller, chief executive of real estate valuation and consulting firm Miller Samuel, said while it was probably a livable home, it needed a lot of TLC, but there had been less interest from buyers since the pandemic. .
Buyers wanted what they wanted quickly. “Instant gratification wasn’t enough,” he said.
But there aren’t enough move-in ready homes on the market right now, Miller said.
“So I think the fixer-upper market is a little bit more supplied than we would normally expect,” he said.
Meanwhile, the median price of existing homes in September rose 3% year-on-year, marking the 15th consecutive month of year-on-year increases. As a result, people actively deal with toilets that don’t flush.
“Many buyers are looking to homes that need renovations as a way to get into the market at a lower price,” said Nadia Evangelou, senior economist at the National Association of Realtors.
However, Evangelou noted that renovation costs have risen in recent years. The price of building materials rose, and so did the wages of people involved in construction.
“While a fixer-upper may seem like a better solution, sometimes it can go over budget without additional renovation costs,” she says. “Personally speaking, we’ve seen it many times.”
Evangelou bought a home in Virginia in 2018. The plan was to start work on the interior right away, and eventually fix the exterior as well.
Six years later, she said she’s still waiting for those fixes.
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