Just when you thought the housing market couldn’t get any hotter, it’s a buying frenzy as the summer season begins.
Most buyers are beset with confidence in the job market, and many also carry the ticking biological desire to start families. Even with all the talk about rising prices, rising interest rates and reduced tax benefits in 2018, demand is not cooling.
If anything, it appears the potential homebuyer is just becoming more rugged and resilient!
According to a March survey, 40 percent of home shoppers have been looking for seven months or more, while 34 percent have been searching for four to six months. The numbers show that there is only enough inventory on the market to last 3.4 months.
In a statement, Lawrence Yun, chief economist for the National Association of Realtors, reported: “supply is woefully low, and home prices keep climbing above what some would-be buyers can afford.”
These are not particularly encouraging statistics, but hard-charging buyers can overcome the hurdles.
And that means they need to hit the ground running. The basics: A water-tight pre-approval letter from a trusted mortgage lender. Bay Equity Home Loans specializes in preparing borrowers by preparing and verifying financial information. Sellers don’t want to deal with someone who can’t get the deal done.
Many buyers may find themselves in a bidding war, flirting with homes they can’t afford.
A pre-approval letter doesn’t just ensure a better shot at competing with other buyers — it can also help stay true to a budget by restricting home shoppers from bidding outside their price range.
A housing budget should include everything from insurance and utilities payments to property taxes and maintenance costs.
Agents today must know the ins and outs of the local tax rate and have a sense of all the accompanying costs. For potential buyers in the summer of 2018, “matchmaking” is the real estate watchword.
In the end, buying a home will be the biggest – and best – financial decision of their lives.