Housing Market Snapshot: Facts You Need to Know About Buying a Home

Ready, set, go…..buy a home! 

You may not have noticed but as you were shoveling the snow off the front steps, the topic of buying a home has become the #1 conversation starter at the water cooler. Here are some facts to keep in mind when you start thinking seriously about entering the real estate market.

·       The U.S. Commerce Department reported last week that sales of new homes fell this past December for a second straight month. That said, home sales for 2013 climbed to the highest level in five years helped by historically low mortgage rates.

·       In the Northeast, the “spring” housing market generally starts to percolate as early as February and peaks just prior to Labor Day.

·       New mortgage lending standards went into effect in January so you’d be smart to check in with your lender. The purchasing power you had in 2013 may not be what you think it is in 2014.

·       The polar vortex definitely had a chilling effect (forgive the pun) on the housing market as those arctic temps slowed buying, ending nine straight months of price gains.

·       As the weather warms up, so will home buying. Many housing economists expect home sales and prices to keep rising in the first two quarters of the year but at a diminished pace. They forecast sales and prices will likely rise around 5%, down from those double-digit gains of 2013.

·       Much like 2013, competition among home buyers will once again be heated. That said, buyers need to be prepared to be aggressive with their offers; expect multiple bid situations; and, not lose momentum if their offer gets a thumbs down.

Want to be a successful home buyer this year? Then work with a buyer’s agent; get pre-approved; do neighborhood drive-bys; eat a power breakfast; and, wear comfy shoes. If it sounds like you’re preparing for a race to the finish, realize that you are. For more insights into home buying, contact me at GoHomeWithMichael.com.