Charlottesville, VA (CVILLE RIGHT NOW) – With the spring market approaching, WINA real estate analyst Michael Guthrie joined Morning News to discuss the current state of the housing market and offer advice to potential buyers and sellers. Guthrie emphasized the persistent challenge of low inventory, stating, “The problem is there’s not enough property to look at, and that continues to be the…the old Herman’s Hermit song, second verse, same as the first.” He explained how this lack of inventory creates a “trickle-down effect,” impacting everyone from first-time buyers to those looking to move up in the market. 

Guthrie also addressed the common concern about rising interest rates. He acknowledged the increased cost but argued that waiting for rates to drop might not be the best strategy. “Would you trade $9,600 for a $40,000 return? Absolutely,” he stated, illustrating how rising home values can offset the increased cost of borrowing. He pointed out that a $400,000 house appreciating at 5% annually would be worth significantly more in just two years, despite higher interest payments. 

Looking ahead, Guthrie previewed an upcoming segment on reverse mortgages, describing them as potentially beneficial for older homeowners with significant equity but limited cash flow. He also teased a discussion on how reverse mortgages can be used to purchase homes, calling it “an interesting sort of twist.” Guthrie’s show, Real Estate Matters, airs tomorrow at 10:00 AM and can be streamed live or listen live on 98.9 FM or 1070 AM.

 Listen here for the full conversation: