Buyers Is This The Right Time For You?
Melissa Gootee
Buyers Is This The Right Time For You?
First let's paint a picture of what's happening right now. I am not going to tell you there is never been a better time to buy because that might not be the case for you.
But we all know that people sometimes need to move, and for various reasons. So let's look at where we are at and some solutions to help you get into the home you need and want!
First, let's look at why the Feds are raising the rates. They are aggressively raising rates in the hope to cool the economy of the raising prices. The hopes are that by raising rates that this will help bring inflation down (Read Here for More).
So What Can A buyer do today to get in the home that they want?
1. Needs & Wants - Sit down and figure out your needs and wants
2. Consider your overall budget - Is there room for improvement? Can you forgo something to make room for today's rising interest rates. Here's a link for a FREE Budget Worksheet
3. Sit down with a lender to discuss debt and credit score - Paying off certain debts can help raise your credit score which in return gets you a better rate.
4. Choose a lender that will help you raise your credit for no cost to you - A lender should have your best interest at heart and should be willing to help you get your score up without sending you to someone that will charge you for their service (In rare cases some do need a professional service).
5. Discuss with your lender about seller paid closing costs and discount points - With today's market changing and the season we are in, sellers might be willing to pay either of these to help you with your cost and them selling faster.
6. Sit down with a/your financial advisor and ask about borrowing against your IRA for a larger down payment - Doing this will lower your mortgage payment and avoid mortgage insurance. In some cases depending on where you are at in your buying journey this could be a smart choice. With stocks going down and your rate to borrow against it, this could be a smart choice (always get professional advice, as everyone is not the same).
7. See if you qualify for down payment assistance - With the changing market and not as many multiple offers, sellers may be more apt to accept an offer with someone getting down payment assistance (find a lender to use this program to see if you qualify. If you need help I work with lenders that do these loans).
8. Talk to your lender to see if an adjustable rate or a buy down might be the right choice to get you into a home - We don't have a crystal ball to know exactly when rates will go back down but with history we know that they go up like a rocket and drop like a feather. So these programs could help you buy today and then in a few years you can refinance to get in on a better fixed rate.
9. Adjust that needs and wants list - Consumers today might still have the mentality of 6 months ago what they wanted and could afford. Things have changed and if we really do want/need to buy now we have to be willing to change a bit too. This does not mean you should settle on a house you don't love, it just means we might have to change our priorities a little.
10. Sit down with a great agent (that's me) that will help guide you through this market and help you find your dream home!
Please Check out my Interactive charts to navigate today's market!
Homes For Sale In Today's Market
Homes for sale Back from 2005-Now
Months Supply Of Homes For Sale
Average Days On The Market
Average Days on Market 2005-Now
Average Percent Of Original Price Sellers Recieved
Okay here's the data, but what does this mean for today's buyers?
First let's look at the number of homes for sale today- Our inventory is going up but we still have record low homes for sale compared to past years.
You can see in the 3rd chart we still aren't quite to 2 months inventory. This means we still are in a sellers market just a different sellers market. than even 6 months ago. To be in an even market we would need to be around 6 months of supply and anything more than that is a buyers market.
Sellers are seeing days on the market going up, but is that really terrible? Homes selling in 1-3 days is a little crazy, right! Even with days on market going up sellers are still recieving close to original list price or more. (Make sure to check back here every month for updated data you see above in my interactive charts).
Are you thinking that now or in the near future maybe be time to buy a home? You can Contact Me directly or you can Download my Ultimate Buyers Guide.
Need help finding A LOAN OFFICER? CLICK HERE to connect with Jane Johanns with New American Funding & you can also fill out an Application to get pre qualified. Learn more about New American Funding.
Here Are More Resources For You
Mortgage Calculator with Today's Rates
