Spring is the time of year when everyone starts looking to buy their next home; otherwise known as House-Hunting season. If you are planning on being in the market to buy or sell a home, you need to know what is going on in the real estate market. According to Freddie Mac, 40% of the home sales for the year happen in April, May, and June. This year the sellers have the advantage in the market, and in some parts of the country, this advantage is A LOT. Here are 4 things that you must know if you are going to be a participant in the real estate market.
· Home Prices are Increasing – If you are looking to buy, you need to know that houses are not staying on the market long. There is a shortage of homes to buy, and if you are looking to stay at the lower end of the price spectrum, there are going to be fewer and fewer homes. Be prepared to possibly be in a bidding war if you find a home you like. Do not be discouraged though, as your real estate professional should be experienced to help you through this process. Freddie Mac predicts that this buying season will be the best one since 2007, so do not delay if you find a home that you are interested in purchasing.
· Competition from Investors in Decreasing – Investors are looking to buy homes for cash when there are too many homes on the market and not enough buyers. Most investors have already purchased the homes they want, so that competition is lessening. Also, most bids that come in with ALL CASH, will win the bid over someone who has to obtain a mortgage.
· Financing Requirements are Easing – Since the downturn of the market, most lenders have eased their requirements to obtain a mortgage and many are offering more types of mortgages. This means that many people, who would not have been able to obtain a mortgage prior, will have a better chance to obtain a mortgage now. Make sure that you are Pre-Approved before you start looking for your new home.
· Lower Priced Homes are Moving FAST – If you are a first-time homeowner and looking for that lower priced starter home, they are not staying on the market long. You need to have your pre-approval letter when you submit your bid to ensure the seller that you are serious about buying. With home prices increasing, it just makes sense to get into a home at a great price while it is on the market, because it will not be FOR SALE for long.
We hope that you found this information helpful. That is what Team Tork is all about; giving great information and education to the community. If you are in the market to buy your next home, or thinking of selling your home, call me. I have the experience and knowledge to get the job done. Call me directly at 651-379-4138 or 651-210-1038, or if you would rather, send me an email to Joey@TeamTorkRealEstate.com. We have more educational information on our website: www.TeamTorkRealEstate.com.