Is It Still Affordable To Purchase A Home?
The answer is yes, but its going to be more stressful then it used to be and here is why.
The market has continued to show the same trend as we saw at the end of last year. The inventory has remained low and this has slowly driven prices farther up. With the current level of inventory many buyers are even looking at new construction for their first home. Existing homeowners are doing the same to avoid the stress of searching at the time of selling their current residence. With this surge of new construction homes, it is even causing the price of building a new home to go up given the cost of lumber.
For many first-time home buyers, they are seeing the most impact from this market. Given the inventory level some buyers may be looking at homes under their price range so that they will have more flexibility in how much they can offer, which makes for heavy competition. Depending on an individuals’ circumstances those homes that would normally be affordable grow out of reach as offers come in well over asking price and become out of budget for first-time buyers. Until more homeowners look to sell and provide more inventory into the market this trend will continue unfortunately.
So how might a buyer in todays market prepare for purchasing a home this month, next or even later this year. The honest answer is to be patient. Be patient and prepare yourself by getting educated on the market and speaking with professionals within the industry. Speaking with a real estate advisor to walk you through the process of purchasing a home from start to finish. That advisor can also prepare you for what to expect when signing paperwork and negotiating. Speaking with a lender to get pre-approved for a mortgage and calculating all the funds you may need when it comes to the time of closing. Making sure you are both mentally and financially prepared should the time come that you may have to offer higher then asking price to win over competition for a home.
The good news is that more inventory is coming. Mortgage rates are still at a record low and this is making it more affordable for buyers to purchase a home. Be patient and be prepared. Purchasing a home this year is well within reach.