You ARE paying a mortgage— Is it yours or your landlord’s?
Last week we discussed the mortgage rates. Home sales went down a little in the last few weeks—due to the late winter storms.
However, buyers are out “en force” now!
So, why should you jump on board?
Unless you’re living rent-free with your folks/family, you’re paying someone’s mortgage. Is it yours? Or are you paying your landlord’s mortgage?
Wouldn’t you like to have more control over simple things, like paint and carpet color, when repairs get done, etc.?
Overall, Mortgage rates are up about 4.4% over the past 12 months. This is a pretty stable rate. In years past, we saw rates increase by .25% quarterly. (This could be as much as a full percentage point in a year’s time!)
Is it a buyer’s or a seller’s market?
A buyers’ market is defined as
” An economic situation in which goods or shares are plentiful and buyers can keep prices down.”
A seller’s market is defined as
“An economic situation in which goods or shares are scarce and sellers can keep prices high.”
“In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense! A seller’s market is defined as a market in which the inventory of homes for sale cannot satisfy the number of buyers who want to purchase a home.
According to the Cambridge English Dictionary, bidding wars occur when two or more parties repeatedly outbid each other as they compete to purchase something- in this case, a home.
In some areas of the country, first-time buyers have been met with fierce competition throughout their experience. Some have been out-bid multiple times before finally winning a bid on a home to call their own.
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale.
With the current number of houses listed for sale and the level of demand from buyers, this means it would take 3.7 months for all the homes listed to sell if no additional listings came to market. Any supply number under a 6-month supply is considered a seller’s market. According to NAR, the housing market hasn’t had a 6-month supply of homes for sale since August 2012.” *
OK… it’s a seller’s market.
The good news for buyers, however, is that the local inventory is growing, according to NAR. The “right” time to buy is weighted heavily on a good balance between home price and mortgage rates.
With inventory starting to increase, and mortgage rates staying fairly stable, your opportunity may just be here to make your move!
You’re already paying that mortgage… why not get something in return… like home ownership?