Sellers: Your home is a haven to buyers in today’s market

First-time homebuyers are flocking to the real estate market by the thousands to find their dream homes in order to make their dreams of homeownership a reality. Unfortunately for many, the inventory of starter and trade-up homes in the US has struggled to keep up with demand!

According to the National Association of Realtors (NAR), the inventory of homes for sale dropped 7.1% year-over-year to a 4.3-month supply and is down for the 25thconsecutive month.

Some homeowners may be hesitant to list their homes for sale because they are worried that they will also have a problem finding a home to buy and move in to. This is a legitimate concern; no one wants to sell their home quickly and not have anywhere to live.

But there is good news! If you are thinking of moving up to a luxury or premium home, there is more inventory available in these markets and you may even get a great deal on a home that has been on the market for a while.

If you are the owner of a starter home and you are looking to move into a trade-up home, or if you are just looking to relocate to a new area in a home of the same size, there is still hope!

In many markets, homeowners are building contingency plans into their contracts. This means that the homeowner builds in extra time before they close in order to find their dream home and they are upfront about the contingency with any buyers who come to see the house.

Your home is an oasis to buyers who are searching for homes in today’s market. The right buyers will sympathize and wait for you and your family to find your next home.

Bottom Line
Don’t let the fear of not finding a home to move in to stop you from moving on with your life. Talk to (ME) your local real estate professional and i’ll help you set expectations with potential buyers from the start.

Posted in Buy and sell, First time home buyers, Sellers | Leave a comment

Now Is A Good Time For First Time Home Buyers

Newlywed Mika Francis of Quincy, Massachusetts, assumed that he and his wife, Julia, would buy a home in 2018. But several factors are coming together that have made him decide this year is a better time to buy. The biggest reason, he says, is relatively low mortgage rates. “If you get in now, you could get a lower rate on your mortgage as well as potentially a lower cost on the home you are purchasing, because sellers are motivated,” Francis says.Now is the time to act if you’ve been thinking about buying a home. Here are five reasons

Now is the time to act if you’ve been thinking about buying a home. Here are five reasons why:

1. Robust economy
A relatively healthy economy and steady job growth are boosting consumer confidence across the country, translating into a stronger incentive to buy or sell a home.
“People are not worried about potentially losing their job, and if they do lose or leave their job, they can be pretty confident they can find another one because employers are hiring,” says Danielle Hale, managing director of housing research for the National Association of Realtors.

2. Interest rates are low
Interest rates have risen over the past few months, but they remain much lower than they were before the Great Recession. Lawrence Bailey, a national retail sales manager for mortgage banking at JPMorgan Chase, says the rise in interest rates of late shouldn’t be a huge worry for homebuyers.

“Real estate is a long-term investment. Historically speaking, as a long-term play, it works out as a good decision,” he says. If interest rates are going up, Bailey says, that means that other areas are going up as well, such as how much you’re earning on your investments and deposits and even the stock market.

3. A surge in housing inventory
The prime home-buying season heats up in the spring as new families search for homes in time to move in before the new school year. Higher housing inventory levels give buyers more bargaining power.

“When you have a higher inventory, homebuyers tend to have more homes to choose from, and the sellers know there’s more competition,” says certified financial planner Deborah Feldman, adding, “They are a little more willing to negotiate on the price.”

The greatest supply of homes for sale is usually from May to July. “Last year, the month with the largest inventory was in May,” says Hale. From a seasonal standpoint, summer is a popular time for moving, explains Hale, adding: “If you started looking in April and put in an offer in June, you could still close in July.”

4. Low down-payment options
Being a first-time homeowner can work in your favor. There are programs that allow for down payments as low as 3 percent and feature reduced or no mortgage insurance requirements. Be sure to ask if you qualify, since the specifics can differ from traditional mortgages.

Lenders typically require 20 percent of a home’s purchase price as a down payment. If a 20 percent down payment is not made, banks usually require that you buy private mortgage insurance, which protects the lender if you fail to make payments on your loan.

5. Rental prices are going up
Rental prices are going up in a majority of US housing markets this year and it would be more affordable to buy a home rather than rent, according to a report by RealtyTrac.com.

The report says that buying a home is more affordable than renting in 66 percent of US housing markets. Making monthly payments on a median-priced home—including mortgage, property taxes and insurance—turned out to be a better deal than the market rent on a three-bedroom property in 354 of the 540 counties analyzed.

“If I could have bought a house earlier, I probably would have just because of the amount of money that I have been able to save,” says Mingo, a sales manager in human resource technology, adding: “Now I have the opportunity to invest in my future and my family that we are planning. Just the ability to have my own space is comforting and rewarding.”

Posted in Down payment assistance, First time home buyers | Leave a comment