Do Current Market Conditions Affect Me Buying a Home?

Do Current Market Conditions Affect Me Buying a Home?

Some common questions consumers ask is “Do market conditions affect me buying a home?” The answer is obvious, but the positive is that there is a strong case for both sides of the argument. Perhaps the market will create some neutral ground; we know we have buyers, and we know we have sellers.

Buying this year means that those who could not afford a new house last year will be able to buy one this year. With home prices dropping nearly 60% it makes it a great time to buy. The other bonus in buying now is that when the market makes its recovery, then you will be able to build equity in your home a little bit quicker. In addition, rates remain low but look at a home for the long term. The market will recover but it won’t be overnight.

Because homes are on the market in every neighborhood there is more to choose from. Depending on the neighborhood you can find more house for less money. Having a generous inventory of homes to pick from will keep prices low, because people may take a little bit more time to look to make sure they find the home they like and at the price they can afford. In addition, many homeowners who need to sell quickly are offering more in closing costs and even letting some appliances go to get the deal done. This can be attractive for those who are on a tight budget and really were not able to purchase anything major outside of the home.

One other thing that will help families, who may not have a lot of money up front, is the help that families can get by doing an FHA loan. Those who are concerned about having a low FICO score are now required to put down 5%. This is a positive thing as it keeps your payments down, and accounts that you made more of an investment in your home. The other great new is, more sellers are motivated to pay more of the closing costs to sell the home. You won’t know until you ask.

Builders are also offering discounts on the packages they have created, and looking at a newer development before buying another home could be in your best interest. I know many people who were looking to build a home and got discouraged due to the cost and time factor. However, if time isn’t a factor and you would prefer a newer home, builders are offering steep discounts to get those homes moving. They can’t afford to let those homes just sit because they will have zero return on their investment.

Mortgage rates are always a concern for anyone whether they are buying or refinancing. Mortgage rates are at a historic low and therefore this aids in a families ability to buy a home. Conventional loans are where it’s at because the rates dropped below 5% which hasn’t been seen in decades. Low rates doesn’t equate to a lender turning a loan for you, so examine your credit. If you don’t like what you see then I can help point you in the right direction on how to start repairing your credit today. The process can be frustrating if you aren’t sure where to start. I can help get you through the process one step at a time, one day at a time. Call me today at 310-498-2700, and we can get the process started.

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