Usually, when the Spring season moves in more people are also ready to “move” into new homes. With the economy still reeling from inflation, and home prices staying high, many people are hesitant to purchase a home right now. But here are some reasons why buying this Spring may actually be a good move.
There are perks to being a first-time home buyer in 2023
Did you know that many first-time home buyers are receiving some help from the government when it comes to interest rates? According to homebuyer.com, on “February 23, 2023, the Federal Housing Administration announced a plan to reduce annual mortgage insurance premiums (FHA MIP) by 0.30 percentage points, which lowers monthly payments for FHA-backed homeowners by $300 per year for every $100,000 borrowed. In December 2022, the government introduced new rules that reduced mortgage rates for low- and moderate-income home buyers by up to 1.75 percentage points. Then, in January 2023, it introduced rules that lower interest rates on low-down payment mortgages.”
These are big incentives for first time home buyers right now, and ones that may make owning a home much more achievable.
Even if you’re not a first-time home buyer, there are still some options out there to help you get to the closing table now. For example, adjustable-rate mortgages are being used for many purchasers right now in order to get a lower rate with hopes it drops even more in the next few years. To learn more about this option, click here.
Sellers are actually helping buyers
Right now, it’s becoming apparent that sellers are willing to make many exceptions in order to sell their homes. In fact, according to Axios.com sampling of real estate contracts, 42% of home sellers gave concessions to buyers recently, including money for home repairs, closing costs, and mortgage rate buydowns.
Not only that, sellers across the country are lowering their asking price in order to make the sale happen. This type of advantage isn’t always present in the market. Last Spring, for example, the sellers were in complete control and it was up to the buyer to make the best exceptions/offer in order to get a sale to close. While the tables are reversed, now’s a great time to make an offer.
Home values are staying strong
Some people don’t want to buy right now because they are worried the home they purchase now will lose value or equity right away. First, if you are looking to buy a home and stay there for a while, this shouldn’t be the reason you don’t buy now—the market will always have ebbs and flows. Second, data is actually showing the market is relatively stable in terms of listings, value and time of sales. According to homebuyer.com, “In its most recent Existing Home Sales report, the real estate trade group shows the national housing supply at 2.9 months, which means at the current sales pace for homes, every residential property for sale would get sold by late May. When home supply is less than six months, prices tend to climb.”
Homes are also retaining their current value, and in some cases, going up in price. This is another reason buying now could be to your advantage. Don’t wait until rates get higher or the price of the home you really want increases.
The bottom line is, now can be a good time to buy if you know how to navigate the current real estate market. One way to do this is to have great real estate partners on your team. From agents and lenders to a great title company like Velocity Title—experts in this industry will be able to help you reach your home buying goal.
Velocity Title Moves Your Business Forward
Velocity Title supports the real estate industry with a comprehensive line of title services that add value to each and every transaction. At Velocity Title, Our Personal Support Makes You Look Good Every Time! With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying and investing process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience every time, click here or contact us today!
