Homeowners who owned their homes before the pandemic are feeling richer due to the increase in housing prices. Many households saw a net worth increase of 21.5% with most in the first quarter. While the wealth of homeowners was going up, the wealth of renters were not going up as fast.
All of this was not due to the pandemic though, we have to thank the policy-makers who decided to ramp up mortgage lending. The larger banks now have over $40.5 billion in common equity tier 1 capital. The internal target is an 11% CET1 ratio but we are looking at lenders passing that sitting on average around 12.8% with the highest recorded CET1 capital of $270.6 billion.
While the current housing market is booming for existing homeowners it is proving difficult for those who don’t already own a home for themselves. Wages are not keeping up and for many this means they are falling further and further behind. Competing with the average citizen are companies that are buying out entire neighborhoods and converting single family homes into rental units. There are a number of companies doing this and really pushing average citizens out-of-pocket. It is these companies that are a part of the bidding war you face when you send in an offer on a house. They are the ones that can easily outbid you and price you out of the housing market completely.
What Can You Do About It?
You have the option to build your home with us here at SilverBeam Homes. Not only can we make your dream of owning a home a reality. But we can also help you get the home you really want. We can create a home that functions the way you need it to. And will make it easy for you to adapt to your new setting to your day to day life after moving in.
Don’t let these large corporations ruin your dream of owning a home. Let us help you create your own home.