More than 90% of outstanding mortgages are at less than 6% interest rate, which is a big reason why new home listings are down substantially. In fact, national resale inventory is approaching its lowest levels in more than 10 years. Even though affordability and interest rates are on everyone’s minds, the market is not as slow as you may think. Sell through pace is 50% higher than in 2019–a year when new construction rose, home purchases increased, and affordability went up. Now, it seems homes are either flying off the market or sitting for months, and some even delisting. Why the drastic delta? Home condition.
Determining the condition of homes encompasses four main components: datedness, wear-and-tear, quality, and appeal. Datedness refers to how modern, trendy, or out-of-fashion the design of the house is. Wear-and-tear is the general level of maintenance. Quality refers to the underlying status of the materials, finishes, and appliances. And appeal refers to the overall aesthetics of the property.
