Exciting New Trends for the Current Homebuyers

 The current housing market is starting to cool along with the buyer frenzy. Professionals in the industry have three trends that can benefit a buyer when they go to buy a home.

1. More Homes To Choose from

For the past several years, the housing market has hit a record low in housing inventory. This coupled with high buyer demand made it hard to even find a home to purchase. The Calculated Risk reported that homes for sale increased by 39.5% in the last week of October 2022 from the same time in 2021. It is still a seller’s market, but the good news for buyers is that there is more inventory to choose from when finding your new home.

2. Bidding Wars Have Eased

With the demand for buyers over the past several years came huge bidding wars. Luckily, for buyers today, things are different. According to the National Association of Realtors (NAR) the offers on sold homes have declined recently. This fall, September showed the average was 2.5 offers per sale, which was down from the 3.7 offers per sale from last September 2021. Since this has started to slow down, the bidding wars are as well, making it a great time to get back into the market and search for a home without the huge influx of competition.

3. More Negotiation Power

When there is less competition for buyers, then there is more negotiation power on your side. The last couple of years has seen buyers willing to skip things like appraisals and inspections in order to win a bidding war. The National Association of Realtors (NAR) shows that buyers in today’s market are not waiving all contingencies. Appraisal and inspection are two very important factors when it comes to purchasing a home. A survey from Realtor.com shows that 95% of current sellers are accepting a house inspection from a buyer. Sixty-seven percent of sellers negotiated with buyers on repairs found during an inspection.

There are still challenges buyers must face in today’s market, but they are becoming more scarce. Now is a great time to purchase a new home, first find a local realtor who can help you on your journey to getting your dream home.

Click Here For the Source of the Information.

To Build or To Buy a Home

 If you want to own a home but haven’t decided whether to build a house or buy one, there are several things to consider. If you love a custom look with features and finishes that are in your taste, then building a custom home would be for you, but if you like historic charm and an older established neighborhood then purchasing a resale is right for you. If your budget is a factor, what is cheaper: building a home or buying an existing one? The National Association of Home Builders and the US Census Bureau reports that the median cost to purchase a home is $410,600 and is less by $28,800 than building a home.

Pros and cons: Building a house

According to the professionals in the industry a basic home can be built for around $150 per square foot. This is for a basic home, but this price can jump up to over $500 per square foot if you want the best of the best. When you build a home you get to choose what you want such as an eat-in kitchen. A new home also has less long-term expenses than an older home. A new home will be more energy-efficient and will have lower utility bills. There are also less repairs and lower maintenance costs.

On the other hand, a new construction home will take longer to get into. Especially nowadays with labor shortages and shipping difficulties. According to the US Census Bureau it takes around 6-8 months to build a new construction home. You will also have an alternative place to live while your home is being built which is an added expense. Since there is a shortage of home inventory, demand is up and the cost of building is higher. The US Census Bureau reports that new construction home costs have risen $84,700 over the same time last year.

Pros and cons: Buying a house

Most of the time, there are fewer construction costs when purchasing an existing home. The only time this will not be the case is when you purchase a fixer-upper. When you purchase a home, the transaction time is also a lot quicker. This would be the best option if you need to relocate or have a short time frame. If location is important, purchasing an existing home will be much easier than finding a lot to build on.

You do not have to build to get an all-new home. You can opt to purchase a new construction home that is completed and listed for sale. You will still have all new everything without the hassle of building a home yourself.

If you are in the market for a new home, find a local realtor who can help you with your purchase of a newly built home, custom-built home or an existing home. A realtor can help you determine which is best for you and your lifestyle. They can also help you with financing options and refer you to a lender.

Click Here For the Source of the Information.

Benefits of Homeownership

 Even with the rising mortgage rates, inflation and the slowing housing market there are benefits to homeownership. The secret is how you gain equity and wealth due to home values rising over time.

“Home equity gains are built up through price appreciation and by paying off the mortgage through principal payments,” stated the National Association of Realtors (NAR).

The Federal Housing Finance Agency (FHFA) released data showing the gains over the last five years. Home prices grew around 64% on average across the country during that period.
Meaning, the home’s value can increase a lot during a short time period.

Think that is good? They also revealed that over a thirty-year span home prices went up over 290% (on average)! Even with the price increases coming in different by state and local areas, a homeowner who purchased a home thirty years ago saw their equity triple.

The cooling house market will still see home price appreciation in 2023. If you purchase a home, it will still grow in value over the next year. It will just grow over a slower pace than we have seen the last couple of years.

The cooling market should not detour you from owning a home. Rental prices have also been climbing and there are no benefits to throwing your money away to rent. Home buying is an investment that will set you up for long-term gains. Contact a local real estate agent to start your homeownership journey.

Click Here For the Source of the Information.