Watching the Market
With finding a real estate agent out of the way, it is time for to start watching the housing market very carefully over the next many weeks or months. You will want to get a feel for whether the market is in your favor or not.
Watching the Housing Market
In recent years, the housing market has leaned more towards favoring home buyers. Market values only soared for a little while as too many people decided that it was not affordable to live in these certain areas. The cost of housing simply spooked a lot of prospective buyers away and had caused home sellers to be more competitive with offering lower prices. And while this sounds like it could be some good news for you in your own house hunting, the housing market is very fickle and could turn on its head in almost no time at all.
It often depends on what area or neighborhood you want to live in, you will probably find yourself paying a lot more, a small fortune, for your dream home. This is why it is important to not only watch the market closely, but you will also want to survey neighborhoods and find an agent that will be effective and successful in finding you a home on the market.
It is easy to get caught up on what is going in the market, especially with so many voices online driving energy into the topic. But be careful because you will want to avoid becoming a slave to the markets you are searching in.
Keep these points in mind before you sign on the dotted line of your new home:
- What is the past market value of the home you are interested in buying?
- How far can your budget get you in different neighborhoods, towns, or cities?
- What is the neighborhood’s value?
- How much can the price of the home be expected to increase over time?
- What are some price reductions that might be available?
- Finding a great deal for a home does not guarantee a large profit with it is your turn to sell. The housing market will keep changing rapidly and you may want to consider a home in which you can pay off quickly. This can help you to maximize your profit on the turnaround later. Home improvements, expansions, and repairs will also increase the value of your home. However, you don’t want to put more into the improvements if you want a large return on your investment. Unless these features are something you specifically want for your own home, don’t splurge too much in these kinds of things as they may not be worth it in the long run. You can create a home improvement budget to help you manage the costs of your new home as well as those projects you want to do.
- In fact, a lot of new home buyers underestimate just how much they might need to put into the home right after purchasing it.
The Housing Marking, making it the most for you.
While watching the housing market don’t forget to watch these important areas too:
- National interest rates for mortgages
- Building rates in your area
- Number of forecloses in your area
- Stack market and gasoline prices
National Interest rates for Mortgages
Just because the housing market is going well for you doesn’t mean those interest rates you’ll be paying are. When the housing market has taken a hit interest rates tend to go up for a balance to remain in the economy.
The interest rate you get will be determined by many factors like…
- Other loans you may have
- Current credit score
- Credit history
- How many credit cards you have
- Yearly income
- Owed debts
- Current interest rate
- Type of lender
- Time of year, and
- Adjustable and fixed rate mortgage
When you see housing prices drop, you might want to buy a larger home than you would have if the prices were higher a year ago. You might be saving money on that end, but you may end up paying more every month because of the interest rate you recived.
Your Areas Building rates
When looking for your new home if you notice the building of new homes in your area has decreased then you may need to go into a bidding war to buy your first home.
When new homes building goes down it can mean on of a few things:
- The area’s popularity has gone down
- Interest for new homes has decreased
- People cannot afford to buy a new home
- People are choosing less expensive older homes that are easier to heat and cool during the year
Even though the housing market might be down a little bit could bring a reduction to the prices and you should consider making a bid as soon as you find that home of your dreams because long term bidding wars will only make it cost you more money in the end.
Foreclosure Numbers In Your Area
While you are looking for your home you might want to look at homes that are under foreclosure. A home can be in foreclosure for many reasons. Banks that hold a title to a foreclosed home want to sell them off as quickly as possible so they don’t have to lose more money on them then necessary. A lot of times home auctions will be held or you can find advertisements in a newspaper or online for the foreclosed home.
You might just find exactly wat you are looking for and should be willing to check out the foreclosed homes in your area.
Gasoline Prices and the Stock Market
You might not participate in the stock market, or even own a car, but that doesn’t mean you shouldn’t pay attention to both areas because they usually decide housing prices and how much it’ll cost to heat and cool your home.
When the stock market is up more people are more likely to spend their money on more luxuries, which will in turn cause higher housing prices. As well as when gasoline prices go up, it’ll cost more to heat and cool your home which may make a soon to be homebuyer reconsider buying their first home until the housing prices go down again.
For you, this is a wonderful time to buy a home if you are willing to pay a little more in utility cost each month.
Society has an enormous impact on the housing market, and they can also be lasting effects. A buyers’ market is made when there are more homes available then there are buyers interested in buying. A sellers’ market is when there aren’t enough homes to meet the demands of people wanting to buy. The housing market fluctuates between a buyers’ market and a sellers’ market due to the things mentioned above.
In The End
A lot of times people will buy a home because it is cheaper in the long run to own instead of renting each month, but make sure you buy when you’re ready!
A downside to owning your own home is that you must make your mortgage payment on time each month, very few lenders will allow any grace period to have the payment.
Even missing one payment could cause your home to be foreclosed on and you could lose your home and your credit score will take a hard hit making owning a home again very hard.
If you can afford to buy a new home now make sure you don’t wait too long before you make an offer, the housing market can change quickly, and with competition out there you might lose money if you don’t put down your offer soon enough.
Rent To Own
Another way to owning your own home is rent to own. This is when you buy a property you are currently renting with the option to buy after a certien amount of time has passed. This will give you a chance to live in the home and see if it’s what you want in a home and to get your finances in order.
Rent to own homes tent tto be older than other homes and have usually been rental properties for some time. That means they won’t always be in the best of shape but they will have a great low price. If you don’t mind putting a little work into your hom this could be a great deal or you.
When looking at a rent to own home here a a few questions you should ask…
- How old is the home?
- How many times has it been rented out?
- What is the mortgage payment on the home?
- What is the rent each month for the home?
- How long do you have to make a decision?
- What happened if you change your mind?
- What happens if they seller change their mind?
Always make sure you sign a contract protecting your and the owners’ rights during the time you will be renting and evaluating if this is the home for you.
When dreaming of your new home, you’re probably thinking of a brand-new home. Since the housing market is in favor of a buyers’ market right now, you my fin a great deal from a builder that is developing a new housing community. You may also find a plot of land that is already in a community that you want to put a home on. These can be great alternatives to buying an older house for many reasons:
- You get to help design your new home
- You get to choose all your appliances and lighting fixtures
- The entire home will have new carpeting and flooring
- You’ll get to choose all the new carpeting and flooring
- You can add a porch or patio, and
- You’ll be able to place the home on your property how you want it
A new home can be a lot of work but it is a very exciting time. The first steps to building a new home toto find the property you want. Visit builders and real estate agents who can file all the paperwork, permits and other things needed to build on the property of your choice. Make sure you allow for time for this all as it can take a few weeks.
Your next step is to design your home, this I most people’s favorite part as you get to design and personalize your home to suit what you want.
When you’re approved for your mortgage, the land has passed all the inspections, and your home has been designed construction can finally begin. It usually takes about three months to build a home from the ground up but this can vary depending on the time of the year and the weather, make sure to allow for time.
With construction complete, you will want to do a complete walkthrough of your home, check all the fixtures and make sure to have the home inspected before you sign the final paperwork. Finally, the house is all yours.
Many people find hiring a lawyer to be helpful to have the paperwork in order before the final walkthrough of the house, ensuring everything is filed right and there are no problems.
Building a new home on your property is just one way you can look at for owning your first home. You could also do a pre-fab home where they build the home off site and deliver it to your property will it will be assembled. Make sure you consider all of your home buying choices before decided what’s right for you and your budget.
Using the Housing Market to Your Advantage
Keeping a good eye on the homes in your area and on the current housing trends you’ll be able to make an offer on the home you want that will be easily accepted.
While the housing market is always changing it is a useful tool for people who are on a budget but still want to find a magnificent home that is large enough to fit their life style and will be worth more when it’s time to sell.
Make sure to consider the following when watching the housing market:
- The number of homes in your area
- How long those homes have been on the market
- The price of a new home compared to one being sold by the homeowners
- The price of renting vs. buying
- The number of homes in your price range
- The highest price you can pay to buy a home
- Interest rates in comparison to house prices, and
- Time of the year.
Spring is the best time to buy for a few reasons:
- More people are looking to sell
- It’s easier to make appointments to view homes
- Prices are usually lower
- People are more willing to reduce their asking price
- Income tax returns can greatly help with a buyer’s budget
Homeowners who need to sell their homes quickly are more likely to reduce their asking price, there is always plenty of people who could not sell their home in the fall or winter months and are really needing to get their home sold for the sake of their own budget.
While it’s a clever idea to look all year round you’ll find the best deals on homes in the spring as prices are lowered to attract buyers.
There is also times when interest rates are re-evaluated and many lenders will give loans to less than perfect credit. Take advantage when interest rates are at their lowest even if it means you should do an adjustable rate mortgage. You’ll have the option of locking into a fixed rate later.
Even though the housing market changes all the time, the idea of selling one’s home will not. Homeowners may wait out the current market. But if they are eager to move or buy another home their wait will be short lived.
Make sure you negotiate with the owners until a fair price can be reached, this is the same during a seller’s market as it is in a buyer’s market. You might have to play the bidding game for a few weeks, but in the end the person who needs it the most will end up compromising the most to get what they want.