The days of bidding wars and houses selling within hours of being listed are coming to an end, as the market has begun to slow down in recent months. This is mainly due to the rise in interest rates.
For many would-be buyers, the current state of the housing market can be a major advantage. Just a year ago, it seemed impossible to get a home. But now, bidding wars have slowed down, and homes are sitting on the market a little longer. If you’re thinking of buying a home, now is a great time to find a deal on a home.
Here are some tips for taking advantage of the current housing market:
- You have more options available on the market, so stay the course, your chances of landing a deal are much higher now. Know your numbers. Get pre-approved for a mortgage, and run scenarios to make sure you can afford the payment with the higher interest rates in mind.
- Price negotiations are going to be available in this market as sellers get anxious to sell their property on time. Do your research: Be sure to look at a variety of listings in order to get a good idea of what’s available and how your Real Estate agent can help you make a great deal on one!
- Use products like ARMs to lower your monthly mortgage payments. These products are fixed for 5, 7 or 10 years and adjust after that time period. But there are no prepayment penalties so you can refinance anytime. Make sure you know the workings of this product before buying because it may not be for everyone. Check out the video link below to understand ARMs:
Buying Real Estate now when rates are high has to make sense for you, yes you can find a deal in a market that is slowing down but you have to make sure the numbers make sense for your family. If you are looking to buy a home for a short term period this is not the time for you. Figure out how much you are paying on rent, (which is technically paying the mortgage for your landlord) and how much mortgage payment would be. In most parts of the U.S. your mortgage will be the same as rent and in that case buying a home will be a no brainer. Remember real estate will help you build wealth but you have to think on a 10 year timeline.
Good luck to you! Until next time...
