There’s a lot of advice out there for home buyers in today’s market. But the housing market is changing all the time, and if you’re on the hunt for a home, you need to stay aware of the latest trends—and how they will hit you where you live.
“Buyers looking to close this year need to keep an open mind and be prepared to move quickly when they find a home that meets their needs, there is “fierce competition among buyers.”
Who are the 2016 home buyers?
Next year’s standout year in total sales will be driven by three distinct segments of home buyers – older millennials (25-34 years old), younger gen X (35-44 years old), and retirees (65-74 years old).
Start your search early
The No. 1 tip that I suggest is to kick off your home search early.
“If you’re intending to purchase, based on the volume of house hunters who are just like you, consider doing it sooner rather than later—you’re likely to get a better price and a better mortgage rate,” there’s far more inventory available relative to the number of sales in the off-peak months.
More than 85% of buyers who plan to purchase in the next year intend to buy in the spring or summer of 2016. With roughly 50% more listings inventory relative to the number of potential home sales expected in January and February, buyers who start their search early face less competition with nearly the same number of homes.
Comparison shop for mortgages
“Work as hard on the mortgage as you do on finding a home—this will pay dividends over the life of the mortgage that you have. Don’t just assume that the 30-year fixed mortgage is the best for you. Depending on your down payment, there are several types of loans you can consider.
Mortgage rates are expected to reach 4.65% by the end of the year (while prices are predicted to rise 3% year over year), but many consumers aren’t aware of the variety in mortgage products that can affect what they pay.
A lower interest rate can make the difference in qualifying for a loan to buy a certain home—not to mention saving you thousands over the life of the loan. So make sure to shop around!
Consider a new home
If there’s anything that can ease the current housing crunch, it’s new construction. But many people just rule out the option, Smoke says.
“You either know about new homes or you don’t know about new homes. The vast majority of people don’t, and they make the assumption that they’re not right for them because they’re too expensive.
Just keep an open mind. After all, the number of new homes on the market is expected to grow more rapidly in 2016, resulting in a 16% increase in new-home sales year over year. But the lack of awareness about new homes means you’re likely to encounter less competition.
While new homes are typically more expensive, they also come with warranties on the structure and appliances—so you’re not likely to get stuck with any hefty repair bills for the first few years.
Remember! While looking for a new home, keep an open mind, your dream home is out there and it may take a little patience to find it.
Click here to begin your new home search today.