- Buying a home can be difficult, especially with the current outlook of the market.
- You must be sure that you can afford your chosen home and market, because not all markets are in good shape right now.
- Home values continue to increase, but the inventory is also becoming more expansive.
- Some housing markets, like San Jose, are cooling off, while others, like Lake County, Illinois, might pose more of a challenge.
- These tips, you can prepare and find the perfect house for your family this year!
Suppose you’re thinking of buying a home; congratulations! Homeownership is a fantastic way to invest in your future. Despite the challenges of the current market, there are still so many opportunities you can take advantage of. By looking at the market’s outlook, you can prepare for what lies ahead.
This article will dive deep into what buyers and sellers expect in the housing market. Even if you are a first-time home buyer, this is the article you’ll need to understand what challenges and opportunities you likely will face in your journey. So, let’s get started by discussing the market’s current trends.
Trend #1: The Housing Inventory is Increasing
According to recent reports, the number of homes available for sale is slowly but surely increasing. The housing inventory jumped 30% in July of 2022. It is 40% lower than 2019, but experts say this will only improve.
This is good news for buyers struggling to find properties to purchase, as the increased inventory should help meet demand and bring prices down somewhat. However, it is still a seller’s market in many areas, so buyers must be prepared to act quickly and decisively if they want to snag a good deal.
Trend #2: Home Values Continue to Rise
Good news for sellers! According to the latest data, annual home values have increased 14.3% since 2021, with the median home price now sitting at $435,000. This is excellent news if you’re thinking of selling your home, as it means you could stand to make a tidy profit.
However, if you’re a buyer, it’s essential to consider what you can afford and start saving up now. With prices rising, it’s more important than ever to be financially prepared before taking the plunge into homeownership.
Trend #3: Mortgage Rates Are Higher Than You Might Think
Mortgage interest rates are rising, but there’s no need to panic if you’re a buyer or a seller. The average mortgage interest rate for a 15-year fixed mortgage is 4.56%, and the average rate for a 30-year fixed mortgage is 5.22%.
As a buyer, you may feel pressure to purchase a home if you need more money to afford the current rates. However, it is essential to remember that sellers should be patient and wait for the right buyer. By doing this, both parties can avoid any unnecessary stress or pressure.
Trend #4: The Online Real Estate Market is Growing
The online real estate industry is booming, and more and more buyers are turning to third-party websites like Zillow to help them with the purchase process. Virtual agents are also becoming more popular, as they offer a convenient and efficient way to complete transactions.
Mobile and online closings are becoming more popular as they offer a convenient and efficient way to complete transactions. With mobile closings, you can sign your documents electronically from anywhere, and online closings provide a secure way to finalize your transaction.
Trend #5: Risky Options Are More Accessible
Consider a rent-to-own or down-payment loan option if you’re looking for a new place to call home. These can be risky choices, but with careful planning, they can be a great way to get into your dream home.
Rent-to-own agreements can be a great way to get into a home if you still need to contact the entire down payment immediately. However, you’ll need to be careful, as you could pay more than the home is worth if the market value goes down.
Down payment loans can also be a good option, but you’ll need to be sure you can make the monthly payments. If you default on the loan, you could lose your home.
Both options can be risky, but with careful planning, they can be a great way to get into your dream home. Be sure to talk to a financial advisor to see if either of these options is right for you.
The Best—and the Worst—Housing Markets in America Today
There are many factors to consider when determining the best housing markets in America. Some important considerations include job growth, population growth, affordability, and quality of life. Here are the top ten markets that are cooling off and becoming more affordable:
- San Jose
- San Diego
- San Francisco
There’s no place like home, but for some Americans, that home comes at an exorbitantly high price. Here are the most challenging housing markets in America, where buyers are paying well above the median home value for their slice of the American dream:
- Albany, New York
- El Paso, Texas
- Bridgeport, Connecticut
- Lake County, Illinois
- Rochester, New York
- New Brunswick, New Jersey
- Cincinnati, Ohio
- Akron, Ohio
- New Haven, Connecticut
- Virginia Beach, Virginia
If you’re in a housing market where the prices are rising, wait before buying a home. Then, keep an eye on the market and see if the prices continue to drop before deciding. Always make a purchase within your means, and never make a risky investment in challenging conditions like they are today.
Are You Ready to Search for Your New Home?
Making the right decision when buying a home is extremely important. You need to make sure you buy a house you can afford to avoid a difficult financial situation. We hope these insights helped you understand the trends and where to look this year for homes.
For more information on all things finance, real estate, and more, feel free to check back into our blog every week to learn more and prepare yourself for the future.