Five years ago first-time buyers had a glut of properties from which to choose, little competition, and plenty of leverage when it came to submitting offers.
No longer so. The housing inventory is down sharply, bidding wars abound, investors are pouring money back into real estate, and sellers are far more likely to accept those fast-moving cash deals than one involving an FHA loan, the preference of many first time purchasers of Greenville NC homes.
First-time homeowners, who typically buy lower-priced homes and need extra financing, are losing out as the market shifts from distressed properties, such as foreclosures. Distressed sales, which usually cost less, were almost half of all of purchases a year ago, but now they’re just over a third of sales. At the same time, prices for all existing homes have been rising—prices were up 4.4 percent in September over the previous year, according to the Federal Housing Finance Agency—making homes less affordable for first-time buyers.
According to a summer survey by The Wall Street Journal, the decrease in supply and the increase in multiple offer situations is both surprising and frustrating to buyers. More than one-quarter of potential purchasers said they would stand back from the market if prices went up or they were in a multiple-offer situation. The survey also found that 16% of first-time purchasers of Greenville NC homes were worried about bidding wars and that 21% were concerned about prices rising beyond what they could afford.
So what can a first-time buyer do to compete? Here are some suggestions:
- Broaden the search, even just a little. Expect to compromise on size, location,features, etc.
- Be prepared to act very quickly when a good property comes along.
- Shop around for financing other than FHA loans. There are conventional loans that require just 5 percent down, and sellers will view them as more financially stable.
- Seek a lender that can process the loan quickly. Look into working with a community bank or a local mortgage banker who can meet your needs in a timely manner.
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Whether you are considering buying a home, selling a home or both, Liz Freeman knows the Greenville, North Carolina area inside and out. Most of her team members were born and raised in Pitt County, NC which has provided them with strong ties to the area, allowing them to become a successful Greenville NC real estate team.
Liz Freeman and her team have distinguished themselves as leaders in the Greenville NC real estate market. Liz assists buyers looking for Greenville NC real estate for sale and aggressively markets Greenville NC homes for sale. Liz is also aCertified Distressed Property Expert (CDPE), avoid foreclosure and short sale expert, committed to helping families in financial hardship find options to foreclosure. For more information you can visit Liz Helps.com. You can reach Liz by filling out her online contact form or give her a call.
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