The Best Time To Buy a Home This Year
The Best Time To Buy a Home This Year A shift is occurring in the housing market this season, making it an excellent time to dive back into your homebuying search. The ideal week to buy a home this year is approaching, so your perfect opportunity is near. Realtor.com experts analyze seasonal trends to identify the best week for homebuyers: “Nationally, the best time to buy in 2024 is the week of Sept. 29–Oct. 5. This week historically has shown the best balance of market conditions that favor buyers. Inventory tends to be high, prices are below peak levels, demand is waning, and the pace of the market slows to a more manageable speed.” In addition to examining historical trends and typical seasonality, Realtor.com also considers current market data, which indicates that conditions are more favorable now compared to recent years. Mortgage rates have recently reached their lowest level in 19 months, significantly improving your purchasing power and affordability. Andy Walden from Intercontinental Exchange Inc. (ICE) notes: “Recent easing in mortgage rates brought some much-sought relief to prospective homebuyers. Along with a general cooling in home price growth, rates falling below 6.5 percent made August the most affordable month for housing since February.” Ralph McLaughlin, Senior Economist at Realtor.com, adds that it’s not just mortgage rates that have improved—inventory levels have also seen a boost: “The number of homes actively for sale continues to be elevated compared with last year, growing by 35.8%, a 10th straight month of growth, and now sits at the highest since May 2020.” That should give you more choices. Meanwhile, sellers are now competing for your attention, which increases the likelihood of negotiations. They understand that if they don't, their house may remain on the market longer. As Zillow notes: “Buyers waiting on the sidelines could find that early fall presents a ‘sweet spot,’ where there’s less competition from other buyers, more motivated sellers and lower interest rates to finance their purchases.” Bottom Line If you want to make the most of this prime opportunity, let’s connect and start preparing now. It might be time to move from the sidelines and dive into the action.
Checklist for Getting Your House Ready To Sell
Checklist for Getting Your House Ready To Sell Preparing your house to sell? Here are a few tips: make it inviting, show it’s well-maintained, and enhance your curb appeal. For tailored advice to make your house stand out in our local market, let’s connect.
What To Know About Closing Costs
What To Know About Closing Costs Now that you’re set on buying a home, planning for all the associated costs is key. While the down payment is often top of mind, closing costs are another important expense to consider. Here’s what you need to know about them. What Are Closing Costs? Simply put, closing costs are the extra fees and payments you’ll need to cover at the closing of your home purchase. While they can vary depending on the home's price and financing, every buyer will face them. Unfortunately, some people overlook these costs in their budget planning. According to Freddie Mac, closing costs generally include: Application fees Credit report fees Loan origination fees Appraisal fees Home inspection fees Title insurance Homeowners insurance Survey fees Attorney fees Some of these expenses are one-time fees included in your closing costs, while others, such as homeowners' insurance, are initial payments for ongoing responsibilities you'll have once you own the home. It’s important to account for both types of costs to ensure you’re fully prepared for what’s ahead. How Much Are Closing Costs? The same Freddie Mac article goes on to say: “Closing costs vary greatly depending on your location and the price of your home. Typically, you should be prepared to pay between 2% and 5% of the home purchase price in closing fees.” Here’s a breakdown of what to expect: For a home priced at today’s median of $422,600, closing costs could range from approximately $8,452 to $21,130, based on the 2-5% estimate from Freddie Mac. If you're looking at a home priced above or below the median, adjust these figures accordingly. Planning ahead for these costs will help ensure a smoother and more manageable homebuying process. Tips To Reduce Your Closing Costs If you're looking to reduce those costs slightly, NerdWallet suggests a few strategies: Negotiate with the Seller: Some sellers may be open to covering part or all of these expenses, particularly as homes are staying on the market longer. With sellers potentially more motivated to negotiate, you might have more leverage. Don’t hesitate to request concessions such as covering the home inspection or providing a credit toward closing costs. Shop Around for Home Insurance: Given the current rise in home insurance costs in many areas, it’s important to explore all your options. Different insurance companies offer various policies and coverage levels, so obtain multiple quotes and compare them. Selecting a policy with reliable coverage at a competitive rate can be beneficial. Look into Closing Cost Assistance: Just as there are programs available to assist with down payments, there are also options to help with closing costs. These programs can vary by area and may be available for different income levels, professions, or specific neighborhoods. For more information, Experian says: “Your real estate professional should be able to steer you toward applicable programs, and the U.S. Department of Housing and Urban Development (HUD) maintains a helpful resource for finding homebuying assistance programs in every state.” Bottom Line Planning for the fees and payments required when closing on your home is crucial, and it doesn’t have to be unexpected. With the right experts helping you, you can ensure you're well-prepared. Let’s connect so you have someone to guide you with more tips and advice.
The Real Story Behind What’s Happening with Home Prices
The Real Story Behind What’s Happening with Home Prices If you’re curious about the recent trends in home prices, you’re not alone. With so much information available, it can be challenging to decide your next steps. As a buyer, you might worry about overpaying. As a seller, you could be concerned about not achieving your desired price. Here’s a quick breakdown to clarify the current situation and provide insight into what’s really happening with home prices, whether you’re considering buying or selling. Home Price Growth Is Slowing, but Prices Aren’t Falling Nationally Across the country, home price appreciation is slowing. Prices are still increasing, but the pace of growth has slowed compared to recent years. The graph below, using data from Case-Shiller, illustrates this shift from 2023 to 2024. Rest assured, this doesn’t indicate that home prices are falling. In fact, all the bars in the graph reflect continued price growth. When you hear about prices cooling, it simply means they’re not rising as rapidly as they did during the sharp increases of a few years ago. What’s Next for Home Prices? It’s All About Supply and Demand You might wonder where home prices are headed next. The answer largely depends on supply and demand and will vary by local market. Nationally, the number of homes for sale is increasing, but it’s still insufficient to meet current buyer demand. This imbalance continues to put upward pressure on prices, even though the recent rise in inventory has slowed the rate of home price appreciation. As Danielle Hale, Chief Economist at Realtor.com, explains: “. . . today’s low but quickly improving for-sale inventory has ushered in more market balance than would otherwise be expected . . . This should help home prices maintain a slower pace of growth.” Here’s another factor that could influence future price trends: experts anticipate that mortgage rates will continue to decline. If this happens, more buyers are likely to enter the market in the coming months. Increased demand could lead to further upward pressure on home prices. Why You Should Work with a Local Real Estate Agent While national trends provide a broad overview, real estate is inherently local, especially regarding prices. What’s happening in your neighborhood may differ from the national average due to varying local supply and demand dynamics. That's why it’s essential to seek insights from a knowledgeable real estate agent. As your go-to resource for information on home prices, a local agent can offer the most up-to-date data and trends specific to your area. If you're planning to sell, they can help you price your home accurately. And when you're ready to buy, they can find the perfect home that fits your budget and needs. Bottom Line Home prices are still increasing, but at a slower pace than before. Whether you're considering buying, selling, or simply curious about your home's current value, let's connect to get the personalized guidance you need.
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