2015 Mid-Year Real Estate Market Report
The real estate market is heating up and first home buyers need to be aware of several recent developments before purchasing a home: (1) Seller’s Market-There are less homes on the market which means there are more buyers than sellers and the competition for homes is fierce with multi-offer bids becoming more common. You must get a firm pre-approval letter prior to your home search and you should work with a Realtor to increase your chances of getting your offer accepted on a home. (2) Skyrocketing Rents-Renting is becoming more costly due to a shortage in housing supply and it looks like this trend will continue for years to come. (3) Escalating Home Prices-The average prices on homes have risen over the last several months which makes buying a home less affordable but it is still better to purchase a home because rents are rising at a faster rate. (4) Rising Mortgage Rates-Interest rates have been creeping up and they are expected to go up more by late 2015 which will increase your monthly mortgage payment and your purchasing power may decrease. (5) Increasing Builder Confidence-There are less existing entry-level homes for sale and builders are starting to build lower priced homes for first time home buyers but availability of these homes may still be a ways off. (6) Tight Loan Underwriting and Intense Processing Standards-Mortgage guidelines are stricter and loan processing requires more verifications and documentation/information from borrowers.
What does this all mean? You must get pre-approved, find a good Realtor, and work on a wishes versus needs list prior to your home search and you may need to compromise on a few items when looking for a home. Also, you need to get off your butt and start now if you want a piece of the American dream because the home-buying process is demanding and you need to jump through some hoops of fire to make homeownership a reality. If you have credit and debt issues you will need to work on them prior to buying a home and you need to contact a loan officer at least 3 to 4 months before searching for a home to make sure you qualify for a loan program. You may need to save some money, work on credit issues, pay off some bills, etc. but the sooner you start the sooner you unlock the door to your new home.
You can fill out a short pre-approval application and one of our team members will contact you as soon as possible so you can get a pre-approval letter in your hand so you can start looking for a home. Also, you can call our FirstHomeBuyer hotline at 847-305-3162 to speak to one of our loan officers right now.