The Current Trends in Real Estate and How You Can Take Advantage
If you are interested in getting into the real estate business or you want to buy a new house for your family, then a good way to start is by learning the current trends. By understanding the market, you can learn the best times to buy and sell and make the most out of your time. For those interested in homes in Florida, look no further than the Jennifer Fieo team. We are experts in real estate, and we have some great information about current trends of which you should be aware. Contact (813) 494-4873.
Prices Are Rising
While there has been a bit of a dip as of late, make no mistake that housing prices are still rising. Many properties are seeing a 15% growth when compared with previous years and there is still a chance that they can continue to rise by 8% or more as the year goes on. In many cases, new homes will sell for thousands more than previously lived-in properties so buyers will need to keep that in mind for their budget.
For home buyers, the inflated numbers can be daunting, but remember that you don’t have to buy right there and then. Your budget must be considered and if you don’t need a house at that moment, then waiting may work out for the best. While many other potential buyers are still on the hunt, some are dropping out of the market, so waiting may be a smart idea.
Mortgage Interest Rates Are Low
If you are seriously looking for a new home, the good news is that mortgage rates are still on the low end. At the beginning of 2021, the rate of a fixed 15-year mortgage dropped to around 2.2% on average. Even as things in the housing market are starting to cool and return to normalcy, experts still believe that rates will remain manageable, potentially staying around 3%, which is a great number for eager buyers to keep their monthly payments manageable.
This is great news for sellers as well because many buyers consider the mortgage rate before anything else when they are looking to buy. It is a great idea for anyone inclined to sell their home to get on the market sooner than later to take advantage of this trend.
Increase in Rent-To-Own
Another trend that is making a big splash is the ability to rent your potential home before buying it outright. Many buyers are a bit skittish and want to make absolutely sure that the house they want is perfect for them, and renting first is a great way to do so. The only downside is that your monthly rental payments may be higher because a portion of that payment may go towards the future down payment when you decide to buy.
Tips for Buying a Home
If these trends are inciting you to buy, then now is the time, but you still want to be smart about the process, especially when it comes to the financial aspect.
For instance, right now, homes in Riverview, FL are going for anywhere from $75,000 to $400,000, so you will need to look at what you can afford and how much you should borrow. A great tool for solving this issue is a mortgage loan calculator, which will take your available funds, account for the length of the loan, and then give you the estimated payments on a monthly basis.
Keep in mind that you will need to have your ducks in a row before making an offer. You will need an adequate credit score, ideally above 580, and you will need a suitable down payment. Sometimes, paying more upfront can make up for a lower credit score.
As you can see, there are many factors that go into buying a home, and understanding the current market is one of them.