As spring approaches, it’s again a seller’s market for home buyers, making for some tight competition on local properties. Here’s what it means for you if you’re looking to buy a home this year.
During the last week of January, mortgage rates dipped to a 3-year low. Since lower mortgage rates equate directly to lower monthly payments, home buying or stepping up into a larger home, becomes affordable for more people. The result is a competitive, local housing market
Of course, higher demand often spurs rising home prices, and today’s market is no exception. In Nebraska, for example, average prices are predicted to climb 2.6 percent in the next year. Kansas can expect a similar trend, with housing prices rising 2.8 percent, according to Zillow.
Unfortunately, in today’s local market, rising costs are also fueled by weak supply. Home inventory has been falling steadily for several years, particularly for starter homes at lower price points. As a result, buyers continue to purchase near asking price or even slightly above.
When home markets are tight, listed properties may not stay on the market for long. In some of the hot spots, such as Council Bluffs, Iowa for example, median days on market for new home listings is only 54.5 days. Peak properties will sell much faster.
If you’re looking to buy right now, you’ll need to have your ducks in a row to take on a competitive market. Here are some strategies to help you more easily land in the home of your dreams:
If you’re in the market for a new home, record-low interest rates make it a great time to buy. However, when searching for a home in some of the country’s hottest markets, you’ll want to be prepared. Be sure to seek a lender who is willing to support you through the process and help you find the best mortgage option to help you land in the home of your dreams.
The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.