Here are four things that we learned in 2017 that can help you with buying a home in 2018:
1. Nearly 50% of homes in the U.S. have values that are still below their pre-recession peak. This is market-dependant. In the Midwest, we find that values are still below their pre-recession peak. In some other metro areas, the values are well above their pre-recession peak. A lot of people are feeling like values have skyrocketed, but they’re really no higher than they were 10 years ago. It’s still a good time to enter the real estate market. As prices go up, you can capitalize on investing in real estate.
2. Homes are selling very quickly. Inventory is at an all-time low, particularly in south-central Pennsylvania. Make sure you find a really good real estate agent who knows how to structure your offer to make it attractive to a seller and make sure you get the house you’re looking for. In the upcoming spring selling season, it won’t be uncommon to see multiple offers in a short amount of time.
3. Remember, the contract is not the finish line. It’s the starting line. During 2017, we learned that more homes than usual were falling through due to appraisal, finance, and other issues. It’s important to know your rights as a buyer, make sure you understand the contract you’re singing, and how to get your deposit money back.
4. Rates are still at historic lows. They’re moving up, but they’re low for the time being. This might be the last year that you can get an interest rate below 5%. That being said, it’s still a good time to enter the market. You might not want to wait a year or two if you can afford to buy right now and have the cash reserves. If you need a referral for a great local mortgage lender, give us a call and we’ll point you in the right direction.
As always, homeownership is still a great investment decision and a good net worth builder for your retirement. If you have any questions or would like a free buyer’s consultation, give us a call or send us an email. We would love to help you out.