Real Estate Trend #1: Home Prices Are Still Rising Slowly
What Higher Prices Mean for Sellers
And be sure to wait for the right offer. Some buyers may try to gut punch you with a low number. If you aren’t in a hurry to move, wait for an offer that gives you the most profit. Remember, the less desperate person always has the upper hand when negotiating!
What Higher Prices Mean for Buyers
If you’re going to buy a home in this expensive market, you absolutely must find out how much house you can really afford.
Commit to staying within that budget amount. Don’t rush into a home purchase that doesn’t make financial sense for you no matter how much pressure you feel watching competitors pluck good homes off the market. You could screw up your finances!
If you can’t put down at least 10% on a 15-year fixed-rate conventional loan, then you probably can’t afford a house in this market. A down payment that’s less than 10% will strangle your budget with massive monthly mortgage payments. But if you want to get prepared to buy and you’re committed to your budget, here are some options to consider:
- Keep saving. If you stay patient and motivated, you can save for a five-figure down payment by this time next year.
- Sacrifice some wants. If you can’t afford to buy the house you want, be willing to give up some “nice-to-haves” for your “must-haves.” Find the least expensive home in the best neighborhood you can afford and you can upgrade as your income and savings increase over time.
- Expand your search. What if the location where you’re planning to buy is what’s busting your budget? You might be surprised at the gem you can find in a less popular neighborhood. Working with a real estate agent who really knows the area is the best way to find a home that fits your budget and lifestyle.
Real Estate Trend #2: Mortgage Interest Rates Are on the Decline (for Now)
What Lower Rates Mean for Sellers
If interest rates stay low, buyers will be more motivated to buy your home sooner than later. But if interest rates do start to increase later in the year, just plan for your house to be on the market a little longer. A mortgage is a big commitment, and adding higher interest rates to the mix will make many buyers pause.
An experienced real estate agent can help you set expectations for how much you can make, and how long you’ll have to wait for the right offer.
What Lower Rates Mean for Buyers
Even though interest rates are relatively low, if you’re not buying with cash, be smart and go for a conventional 15-year fixed-rate mortgage. That way, you know exactly what your payment will be over the life of the loan.
Take Control of the Trends With a Top-Notch Real Estate Agent
Get in touch with me…let me answer all of your real estate questions. Weather you are looking to buy a new home or sell your home. I’m here to help. Remember it’s YOUR home, YOUR family, MY purpose! contact me today. 513-227-4284; sdennedy@gmail.com