A Housing Market Slowdown is Good News for Home Buyers

As we ease into autumn, more than a few things begin to change around us. Sunsets arrive a bit sooner; sweaters and coats get pulled out of hibernation; and, real estate sales historically tend to cool off as well. And that, my friends, is good news for home buyers.

According to the most recently released data, sales of existing and new homes have fallen about 5 percent during the first six months of 2014 compared to the first half of 2013. And the reason behind that slowdown? Our analyst friends at Freddie Mac recently said that “a period of higher mortgage rates, a harsh winter, and slower economic growth compared to a year earlier contributed to the slowdown.”

Simply put: it’s a great time to buy a new home.

Consider these factors:

· Home sellers who had their house on the market over the spring but didn’t sell their homes will be dropping prices. They don’t want to have their homes linger on the market during the winter.

· The number of home loan refinancing applications has dropped to a trickle leaving lenders more than eager to work with home buyers. Combine that with still-low interest rates and home buyers stand a better chance than ever of finding a loan product that will work for them.

· Homeowners who were holding off for higher pricing to appear before selling their own homes are wising up. They know that if the home selling slowdown continues into next year, they would have missed their chance. That said, we’re expecting more homes to go on the market this autumn as opposed to years past.

So what’s a home buyer to do? Here are my top 3 tips for you:

1. Go Shopping For A Mortgage Loan. Lenders want your business so do some comparison shopping and don’t be shy to negotiate on fees.

2. Do Your Drive-By Due Diligence. Finding the ideal community is often harder than finding the ideal home. Do yourself a favor and get to know the neighborhoods first before your schedule any private showings.

3. Hire A Buyer’s Agent. This bears repeating in all caps: HIRE A BUYER’S AGENT. Most people don’t realize that working with a Buyer’s Agent doesn’t cost them a dime. The agent’s commission is paid out of the proceeds from the sale of the home. What more could you ask for? A licensed professional whose job is to help you find the ideal home and the service is FREE!

For more information on the current housing market or tips on how to buy your first home, feel free to contact me. I’ll be the guy rooting through his closets looking for his winter boots.

Michael A. Pallares, Realtor, ABR. Coldwell Banker Residential Brokerage. 617.899.3162. GoHomeWithMichael.com