It’s a Great Year for Buying a Home
A tight real estate market in 2014 kept many homeowners out in the cold when it came to making a move, but options for buying a home are heating up this year. A new Fox Business article gives credit to increased inventory for this upturn, as well as other positive reasons more people will be re-entering the market.
Mortgages could be simpler.
“Lenders will accommodate people who had some issues but whose credit has since been good,” says Brian Simon, Chief Strategy Officer at New Penn Financial. Lending guidelines won’t revert back to the “no questions asked” scenarios seen in the early 2000’s, but more people will be able to qualify in 2015. However, if you are selling your current home and looking to buy another you’ll want to engage a lending officer to find out your options and interest rates because variables have likely changed since the purchase of your last home.
Interest rates are predicted to be a non-prediction.
Interest rates won’t be an issue for buying a home this year. Many analysts are predicting that rates will remain steady and stay low. Realtor.com estimates that they won’t rise any higher than 5% for a thirty-year fixed mortgage.
A larger inventory of homes will be available.
Lack of inventory, bidding wars and cash offers from investors made buying a home difficult for some in 2014. However, this year, says article author Donna Fuscaldo, increased inventory will give more people the chance to purchase their next property. Nela Richardson, chief economist for real estate brokerage Redfin, expects buying a home to be easier in the $375,000 range with bidding wars becoming somewhat unusual. She predicts that only a third of the market will experience these type of situations, down from 75% in 2013.
Increased inventory can also be attributed to the price increases that happened in 2014. Richardson estimates that as many as 8% of sellers will enter the market at the beginning of this year because they now have built up equity in their home.
Southstar Communities is led by experienced, knowledgeable team members who specialize in helping people buy land. At SouthStar's flagship community in New Braunfels, Vintage Oaks, buyers now also have the opportunity to purchase home-lot packages from some of the nations most recognized builders. Call us today and find out why one of our communities is the right place for you.