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What you need to know about buying a house this Spring
Spring is house hunting season. The months of April, May, and June are generally the busiest in real estate, and account for around 40% of all home sales for the year. And this Spring, sellers definitely have the advantage.
Inventory is Low
Currently, housing inventory is extremely low. There is a 2.5 month inventory of homes for sale. A 6 month inventory level is considered a balanced market. Anything under 6 months worth of inventory is considered to be an undersupply, favoring home sellers as opposed to favoring home buyers.
Home Prices Are Rising
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects home values to appreciate by more than 3.2% a year for the next 5 years.
Home prices in our area have risen over the last year by 3.06%. Home prices are on a steady rise; and are expected to continue to increase.
In addition, the homes in our area are selling at 97.95% of list price. This means that homes are selling very close to list price. So if you really love the house and don’t want to lose out to another buyer, you must make a very strong offer. Trying to make a low ball offer in this market is not going to work.
Homes Are Selling Fast
Not only is there a very low supply of houses for sale, but buyer demand is high. You will have a lot of competition for just a few houses, which means the houses are selling very fast. Homes that are in good condition and are priced right, are selling in just days. Sometimes even within just hours! So be prepared to act fast!
When a new listing comes on the market that interests you, it’s important that you contact your Realtor right away so you can view the home as soon as possible. If you wait a few days to go see it, it likely will have already sold.
Mortgage Rates Are At Historic Lows
This month the average 30-year fixed rate conventional mortgage fell from 3.72% to 3.65% which is its lowest point in the last 10 months. The average on a 15-year fixed rate also slid to 2.95%.
The interest rate on an FHA loan currently sits at 3.38%. A VA loan interest rate right now is 3.5%.
While these are fantastic interest rates, it’s important to realize that they won’t last. In fact, experts predict that interest rates will rise over the next four quarters by an average of 0.5%. That increase may not seem like much, but it will significantly affect the amount of home you can afford to buy.
What You Need To Do
Get Competitive – You need to prepare yourself to be competitive in the housing market. That means you must be prepared to make a strong offer when you find the right house, and get it submitted quickly.
In addition to making a strong offer price, you must also be prepared to provide a pre-approval letter with your offer. A pre-approval letter strengthens your offer because it shows the seller that you have the financial capability to purchase the home. So it’s imperative you choose the right lender and get pre-approved before looking at homes.
Educate Yourself –
Get your copy of this Complete Home Buying Guide. No registration, no solicitation, you just call us when you’re ready.
Schedule a Personal Home Buying Consultation. If you’re ready to discuss your real estate goals, learn about the market, and meet with a local expert to help guide you through the process, call or text us at 513-368-3751
Start your search here – View full details and photos of all available homes for sale. Our Homes For Sale information is a direct feed from the Multiple Listing Service (MLS) and is updated every 5 minutes so you will never miss a new listing!
Questions about buying a house in the Spring market?
Contact The Lowry Team today!
Call or text 513-368-3751
