Inventory increased by a net of 11 homes this past week, which was obviously not enough to satiate all the buyers looking to purchase and live in Seattle proper. Price per square foot is now $337 per sq foot, which begs the question: How much cheaper is it to renovate one’s current home vs selling to purchase a moving up home? If price to build new is around $125 (depends on your finishes, of course), is it worth that additional $210 per sq foot to find some other land? Or would it make more sense to stay put and remodel?
I genuinely worry that inventory will only decrease further moving forward because more and more sellers will realize there’s no point in selling. They would be better off completing a cashout refinance or taking out a HELOC on their current homes, and adding that extra bathroom, bedroom, bigger kitchen, etc than they would be trying to leverage up. Bottom line: If you have some money and you know a contractor or builder looking for private investors – now would be as good a time as any to invest in them!
Today's blog courtesy of Kyle Bergquist, Guild Mortgage