Landing a home in a seller's market
By Academy Mortgage Corp.
With total applications for home loans on the rise and housing starts down 8.8% in March, prospective buyers will need to prepare for aggressive spring and summer buying seasons.
Knowing how to navigate a seller's market is critical for individuals looking to apply for a U.S. home mortgage. With so much competition for housing, interested buyers must properly equip themselves with knowledge, professional assistance and a strong strategy.
NAHB reports housing starts are down
In addition to housing starts declining, the number of issued permits also fell in March to 7.7%.
"Single-family starts are off from their strong showing in February but this slowdown represents a return to a long-run, gradual growth trend that is consistent with builder confidence levels, which are overall positive," said NAHB Chief Economist Robert Dietz. "While we are also seeing a monthly decline on the multifamily front, multifamily construction is expected to level off at a solid rate given the high level of rental housing demand."
Production of single-family and multifamily units decreased by 9.2% and 8.5%, respectively. However, when compared on a year-over-year basis, single-family starts rose 22.6%.
"Starts are up at a double-digit rate from a year ago and builders remain fairly optimistic that more consumers will return to the housing market in the months ahead," said the NAHB's Chairman Ed Brady.
Low inventory and high demand drive up prices
When there are fewer available homes for the increasing number of interested buyers, finding an affordable property will become more difficult for consumers. Jonathan Smoke, the chief economist of the National Association of Realtors, indicated there are many signs the coming months will be especially busy for the real estate industry.
The economy continues to demonstrate its strength, and new jobs are becoming available in many industries. Consequently, these factors are likely responsible for higher consumer confidence this spring. In fact, the number of people indicating they plan to apply for a loan with a mortgage company is at its highest point in eight years.
Buying a house in a hot market
Buyers looking to invest in a new home should enlist the help of a professional real estate agent before starting their search. It's also best to interview multiple agents before settling on one. Ask questions about experience and how many offers they've won.
"Pre-qualification is another way to appeal to sellers when making an offer."
Another way for interested buyers to increase the likelihood of landing a home in a seller's market is by identifying where they are willing to compromise. Whether it's living on a smaller lot or deciding to invest in a home that could use a few updates, there are several compromises that can be made to find a more affordable home in a seller's market.
Pre-qualification is another way to increase appeal with sellers when making an offer. Find a trustworthy loan officer and recruit his or her help early on when looking for a home in a hot market.
Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the 2015 CoreLogic Marketrac Report.Contact me to find a loan, get a rate, or calculate your payment today.