There’s a lot of advice for would-be home buyers. 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’ll hit you were you live (literally).
In order to help buyers land their dream home in 2016, Realtor.com has come up with a list of advice. 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.
Start your 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 is far more inventory available relative to the number of sales in the off-peak months. More than 85% of buyers who have to purchase in the next year intend to buy in the spring or summer of 2016, according to the most recent Realtor.com survey. 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 mortgage is the best for you. 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. You either know about new homes or you don’t. 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 because after all, the number of new homes on the market is expected to grow more rapidly in 2016. This will result in an 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 typically are 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.
Picture yourself in the Midwest or the South
The biggest issue expected to hold buyers back this year is an inability to find a home in their price range. Buyers in the Midwest and the South have an advantage there. Of course, relocating depends on many factors, the most important being the availability of jobs in your field and a network of family and/or friends, but if you’re living from paycheck to paycheck in California, it’s worth checking out your options.
