Avoid These Top Homebuyer Mistakes in Today’s Market
Avoid These Top Homebuyer Mistakes in Today’s Market No one enjoys making mistakes, especially when they occur during what’s likely the biggest transaction of your life—buying a home. This is why partnering with a trusted agent is so crucial. Here’s a glimpse at the most common missteps buyers are making in today’s market and how a great agent can help you avoid each one. Trying To Time the Market Many buyers are attempting to time the market by waiting for home prices or mortgage rates to drop. This can be a risky strategy, as numerous factors can influence these variables. As Elijah de la Campa, Senior Economist at Redfin, states: “My advice for buyers is don’t try to time the market. There are a lot of swing factors, like the upcoming jobs report and the presidential election, that could cause the housing market to take unexpected twists and turns. If you find a house you love and can afford to buy it, now’s not a bad time.” Buying More House Than You Can Afford If you’re considering stretching your budget a bit further than you should, you’re not alone. Many buyers are making this mistake right now. However, it’s crucial to avoid overextending your budget, especially with other housing expenses like home insurance and taxes on the rise. It’s essential to consult with the professionals to ensure you understand what will truly work for you. Bankrate offers this advice: “Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan doesn’t mean you can comfortably handle the monthly payments that come with it along with your other financial obligations.” Missing Out on Assistance Programs That Can Help Saving for the upfront costs of homeownership requires careful planning. You need to consider your closing costs, down payment, and more. Without a team of experienced professionals, you might miss out on programs that could significantly benefit you. This is happening more often than you might think. According to Realtor.com, nearly 80% of first-time buyers qualify for down payment assistance, yet only 13% actually utilize these programs. Therefore, it’s important to talk to a lender about your options. Whether you’re purchasing your first home or your fifth, there may be a program available to help you. Not Leaning on the Expertise of a Pro This last point may be the most crucial of all. The best way to avoid making a costly mistake is to rely on a professional. With the right team of experts, you can easily navigate around these missteps. Bottom Line The good news is that you don’t have to face any of these headaches alone. Let’s connect so you can have a professional by your side who can help you steer clear of these costly mistakes.
Why Home Sales Bounce Back After Presidential Elections
Why Home Sales Bounce Back After Presidential Elections With the 2024 Presidential election approaching, you may be curious about its potential impact on the housing market. Let’s break it down. Election Years Bring a Temporary Slowdown In any given year, home sales tend to slow down a bit in the fall due to seasonal trends. However, data from BTIG indicates that in election years, there is typically a slightly larger decline in home sales in the month leading up to Election Day (see graph below): Why does this happen? Uncertainty. Many consumers hesitate to make significant decisions or purchases while they wait to see how the election unfolds. This pattern has emerged repeatedly, particularly among buyers and sellers in the housing market. This year is no exception. A recent survey from Redfin found that 23% of potential first-time homebuyers indicated they’re waiting until after the election to buy. That’s nearly a quarter of first-time buyers putting their plans on hold, likely due to similar feelings of uncertainty. Home Sales Bounce Back After the Election The good news is that these delayed sales aren’t lost forever—they’re merely postponed. History shows that sales typically rebound after the election concludes. In fact, home sales have increased 82% of the time in the year following an election (see chart below): That’s because once the election dust settles, buyers and sellers gain clarity about what lies ahead and generally feel more confident in moving forward with their decisions. This increased confidence often results in a boost in home sales. What To Expect in 2025 If history serves as an indicator, this suggests that more homes will sell next year. Based on the latest forecasts, that’s precisely what you can expect. As the graph below illustrates, the housing market is on track to sell a total of 4.6 million homes this year, with projections indicating 5.2 million total sales next year (see graph below): This aligns with the typical pattern of post-election rebounds. So, while it may seem like the market is slowing down right now, it's more of a temporary dip rather than a long-term trend. As has been observed in the past, once the election uncertainty subsides, buyers and sellers will return to the market. Bottom Line It’s important to remember that while election years often lead to a short-term slowdown in the housing market, this pause is usually temporary. Those sales are not lost. Data shows that home sales typically increase in the year following a Presidential election, and current forecasts suggest that 2025 will be no exception. If you’re waiting for a clearer picture before making a move, rest assured that the market is expected to gain momentum in the months ahead.
Why Your House Will Shine in Today’s Market
Why Your House Will Shine in Today’s Market Even though there are more homes available for sale than there were at this time last year, there are still more buyers than houses to choose from. So, if you’re considering a move, know that your house can truly stand out. There are several key reasons why there aren’t enough homes to meet demand, and understanding these factors will help you see why the market is favorable if you’re ready to make a move. What’s Causing the Shortage? 1. Underproduction of Homes: For years, the industry has not built enough homes to keep pace with demand. As Zillow explains: “In 2022, 1.4 million homes were built — at the time, the best year for home construction since the early stages of the Great Recession. However, the number of U.S. families increased by 1.8 million that year, meaning the country did not even build enough to make a place for the new families, let alone begin chipping away at the deficit that has hampered housing affordability for more than a decade.” 2. Rising Costs: Building materials, labor shortages, and supply chain disruptions caused by the pandemic have all contributed to making it harder and more expensive to construct homes. This has the effect of either limiting or halting new home construction in certain areas. 3. Regional Imbalances: Some markets are more significantly impacted by the shortage of homes than others. In popular and desirable areas, more people are moving in faster than new homes can be constructed. The number of new building permits issued doesn't always match job growth in these regions, resulting in even tighter markets and higher prices. How Big Is the Problem? According to estimates from Real Estate News, the U.S. is experiencing a housing shortfall of approximately 3.3 million homes, based on an average of various expert insights (see graph below): This indicates that a substantial number of homes need to be constructed just to meet the current demand from buyers. But what about future demand? According to John Burns Research and Consulting (JBREC), the U.S. will require approximately 18 million new homes over the next 10 years to meet projected demand, which includes homes for new households, second homes, and replacements for aging or unusable properties. So, even though there are more homes on the market compared to last year, there still aren’t enough to satisfy demand. This presents a significant opportunity for you if you’re ready to sell your house. What You Need To Remember If you’re considering selling, the current shortage of homes for sale means your house is likely to attract significant attention from buyers. It will take years to recover from this inventory deficit, and the market remains very tight. When buyers compete for the relatively few homes available, it generates increased interest in the properties on the market, driving up prices and ultimately benefiting you. Since every market is unique, it’s crucial to work with a real estate agent who understands local trends. They can assist you in pricing your house appropriately and developing a strategy to attract the right buyers. Bottom Line While there are more homes for sale compared to this time last year, there is still an overall shortage. This positions you advantageously as a seller. Let’s connect so you have someone to help you capitalize on today’s market.
Debunking Scary Myths About Buying a Home
Debunking Scary Myths About Buying a Home There are several alarming myths about homebuying in today’s market. Here’s what you need to know: prices are not expected to crash, it is possible to buy even with student loan debt, and there are programs available to help you save for a down payment. Don’t let these myths delay your homebuying plans. Let's connect so you have a professional to help you distinguish facts from fears.
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