The real estate market is seemingly changing by the day, and if you want to get a great home for a great price, making a move now is in your best interest; conditions a year from now (or even six months from now) aren’t likely to be as hospitable. Interest rates won’t stay this low for long, now is the time to take advantage of current rates. Mortgage rates are scheduled to rise at least 3 times in 2018, with many experts predicting the interest rate for a 30-year fixed mortgage will reach 5% by the end of 2018. Locking in a lower interest rate on your mortgage today, will save you tens of thousands of dollars over the course of your loan, which is why securing a loan now is in your best interest.
Another reason why now is a good time to purchase a home is that, housing markets are growing more competitive every day. Competition is getting fierce in the Florida market and across the country. Homes are sold almost immediately, often above the asking price, and sellers are often dealing with multiple offer situations. The competition in most real estate markets is still manageable and deals are still to be found, but as the economy continues to improve, the competition will heat up even more – making finding and buying the home of your dreams significantly more challenging (not to mention expensive).
Speaking of expensive, homes are (literally) getting more expensive every day. In fact, as of June 2017, home prices have been rising every single month for well over 5 years. And that trend shows no sign of slowing. Experts predict home prices will jump 3.5% in 2018 (with hot markets, like the South Eastern U.S., seeing even greater increases). Which means that if you purchase a home at the end of 2018, you can expect to pay an average of 8.5% more than you would pay today.
One of the factors of rising home costs is low inventory. When there are too many people who want to buy homes and not enough homes for them to buy, it drives up prices and competition in the market. We currently have a huge problem with low inventory in South Florida. But unfortunately, that problem doesn’t have a simple solution. As interest rates rise, people are less likely to put up their homes for sale on the market in an effort to preserve the lower interest rates on their mortgages.
The moral of the story is: there’s low inventory now, but there’s likely to be lower inventory in the future, which means prices will soar even higher. It’s better to buy now then it is to wait for the problem to get worse. Buying a home is a big decision. But if it’s a decision you’re considering, now’s the time to make a move. You’ll enjoy lower interest rates and an overall less expensive (and less stressful!) experience today than you will if you wait.
Knowing the Buyer Profile in today’s market, helps Real Estate Professionals relate to buyers, and helps find them exactly what they’re looking for. To get an idea of Buyers in today’s market, The National Association of Realtors shared statistics from a survey in Figure 5 below.
In addition, knowing the trends in a real estate market, holds a lot of importance. Currently South Florida is in a “Sellers Market.” This means that, there are fewer homes for sale to a larger pool of buyers. There are various factors that enable this outcome, in South Florida a few are: growth in employment rates, sustained “low interest rates”, and legislative changes which make it easier to purchase property. In a Sellers Market the advantage goes to the seller. Typically home prices will rise as buyers are quick to make an offer to secure the property. It is highly competitive amongst home buyers, and this high demand to low supply leaves little room for error and a huge significance on how long it takes a buyer to make a solid and highly competitive offer. In a Sellers Market, time is of the essence and it is literally a battle of who can bring all of the criteria asked of by the seller as well as an offer that can beat out the competition. In Figure 6 below, are ways you can beat other buyers in the housing market.
Here are 5 keys to beating out the Buyer competition and getting the home of your dreams in a tough Sellers Market
Although today’s South Florida Real Estate Market presents stiff competition to Buyers, there is still great opportunity for Buyers to close deals on beautiful property with the help of a skilled Realtor. As I mentioned before, having a Realtor to assist you throughout the home buying process is invaluable. You save money, hassles, time, effort and gain a resource of expert information when it comes to the Real Estate Market. Below in Figure 7 are, 7 reasons you should buy now.
Here are 7 reasons why NOW is the time for buyers to buy!
So, we’ve learned two things that are of the upmost importance in a Sellers Market, and that is there is strong competition and you don’t have time to waste! Wasting time during the home buying process ultimately costs you more money in the long run. It is very important to follow the 5 keys above to prevent you from throwing away unnecessary money. That means any Renter’s who are hesitant to become home owners or First-time home buyers who don’t meet deadlines with turning in documents to their Buyers Agent will unfortunately pay a hefty cost.
Realtor.com did a recent study, and found that Buyers who wait too long to buy could potentially end up spending considerably more money for a home when they do finally decide to purchase. This proves that buyers who buy NOW are saving thousands of dollars (See Figure 8 below).
So, are you ready to buy a home? Now is a great time, let’s get started today!
Click Below to start your qualification process.