When you are ready to buy a home, you want to have as much knowledge about the market as possible. Knowing some of the trends in housing will give you a leg up when trying to find the best home at the greatest possible prices. Here are some of the latest housing trends that will help give you the edge when it comes to buying your perfect home.
Homebuyers should act quickly
When you are in the market for a home, you have to be ready to pounce. The buying market these days doesn’t allow near as much time to make a decision. Because houses on the market are going so fast, you have to be able to decide on whether a home is for you and how much you are willing to pay for it. What are some things you can do to prepare for buying a house when the right property comes on the market that checks all your boxes?
- Know how much you can afford. Have a specific budget that includes a range. When you reach a threshold on the top of your budget, be willing to walk away, no matter how fantastic the house seems.
- Get pre-qualified for a mortgage. When you know a bank or other lending institution will be able to loan you a certain amount, your realtor will be able to show you the properties in your range with confidence that you will be a responsible buyer.
- Down payment. Pay as much as possible for your down payment. The more you give up front, the less your fees and the faster you can pay off your home. The down payment will also give you some equity in the house that you can use later on.
- Make sure you do some research on a real estate agent. The sooner you sign up with an agent the faster you can start seriously finding a property for your family.
Mortgage Rates are going up
Mortgage rates are the interest you will be paying on your house each month. The lower the better. The interest rates have been at all-time lows in recent years to help the homebuying return to normal levels. Now that regulations are in place to make sure homebuyers are better prepared to pay a monthly mortgage, interest rates are climbing back up. Industry professionals predict that rates will continue to rise. The growing rate makes it even more imperative that you act quickly when it comes to buying a home. Even a percentage of a point can add thousands to the total you pay for a home, so if you are in the market, don’t hesitate to start looking as soon as possible.
Home Equity Lines of Credit
Since the interest rates are rising so quickly, the trend is to stay in the home you are already in. If you have a low price now, you would be losing money by getting into another house at a higher rate. Because of this, people are taking advantage of home equity lines of credit. Many lines of credit allow you to borrow at the lower price that you started your home loan with, so you can improve, or add onto your current house to make it more livable and increase the value of it when you sell.
It is essential to keep tabs on all the housing trends so you know the best times to buy and sell and the best ways to get the most value out of your home.