It’s been tough the last few years to buy a home, and it remains so, but it’s getting better. In this post, we’ll help buyers and sellers navigate the upcoming homebuying season.
Still A Seller’s Market
It remains a seller’s market, so buyers will have less room for negotiation, and it will be harder to find good deals on homes. Housing inventory is low, so each property is exceptionally valuable.
That being said, price growth is slowing. It has been steadily rising at an alarming rate for home buyers, and while it will still increase, it is rising at about half the rate it was. Some sellers have found they overshot the mark a bit and have had to lower their prices.
With high mortgage rates and home prices, many people can’t afford to buy a home right now. While that’s unfortunate for them, it means there is less competition for those who can. You should have more time to view homes and to carefully consider your offer.
Keeping Costs Down
You can keep mortgage rates more manageable and tackle higher home prices.
First, don’t make the mistake of waiting for rates to go down before you buy. It could make buying a home more difficult than it has to be when you can always refinance later when the rates are better.
Do compare mortgage lenders to get the best rate you can. Finding a rate 0.5% lower could save you $100 a month. Look for one that will cost you less in upfront fees to reduce your costs by hundreds or even thousands.
And don’t use all of your preapproval budget. Get your preapproval, then budget how much house is best for your needs and your long-term financial plans. This way, you can be sure you have a mortgage and other home expenses that are more manageable. Your mortgage payment should be 28% or less of your monthly income before taxes.
Consider an adjustable-rate mortgage. You can enjoy a “teaser” rate for 5 years before your full rate period kicks in. If you discover that interest rates have gone down by that time, you can refinance and get a fixed-rate mortgage.
If you have time, consider improving your credit score. Higher credit scores can lower your interest rates.
Consider buying a home in less expensive areas. A higher quality home may be available at a lower rate outside of urban areas.
Tips for Selling
The shift to remote work has changed which areas have the most appeal. You may find your home has more or less value than you expected because of its location. A real estate agent familiar with the location and the locals’ expectations can help you choose the best price for your home.
Don’t skimp on repairs, updates, and staging. You’re asking for higher prices when it’s harder for people to pay them, and they’ve been seeing beautiful homes on HGTV. If you want to get the best prices, you want to make sure your home looks its best.
Call Wendy Gimpel Today
If you want to buy a home, there is a little breath of cooler air in the hot housing market that you should probably take advantage of. If you’re selling, you still have an excellent market to work with. Make the most of your purchase or sale by hiring Wendy Gimpel. She’s just a call or message away.