“It’s more commonly found with younger people because they’re trying to find their way in the world. After that, it’s really seeing how much income one has.”
COVID backlash: lack of inventory and under-appraisals
Lanzoni said the lack of inventory – the lowest on record since the turn of the century, according to Norada Real Estate Investments – was now one of the most pressing issues in the housing market in the wake of the crippling pandemic.
“I’m approving as many people as ever, but there’s a lack of inventory and we’re seeing it everywhere,” he said. “There’s people who look at a house, but there’s 20 other offers, and if the house is on sale for $400,000, people are offering $450,000.”
This has led to the growing phenomenon of under-appraisals, which has reached unprecedented levels in the three years Lanzoni has been doing his job. It means the seller either has to renegotiate and make less money on the deal, or the buyer has to cover the difference – a text-book definition of a seller’s market.