What is it like to try to buy a house in this extraordinary housing market?
Scan the Real Estate section of our newspapers, and you will see that people are leaving the cities in droves, and heading for suburban pastures, particularly in the suburbs outside New York City.
What that may mean for you, as a new home buyer, is that you will need to make a decision on buying a home that has come onto the market much more quickly than in a “normal” year, as inventory is lower than demand for houses outside the city.
Even city dwellers who had planned to move to the suburbs in coming years are moving up their timelines as fear of additional waves of the pandemic looms.
As more companies determine that the “work-from-home” office setups of the past six months are working out just fine--even advantageously--for them, people are demanding more room to spread out with their laptops and files.
Crain’s New York Business last month reported on a recent Bank of America poll, and said that the record low US mortgage rates are “adding fuel to a housing market that’s been a key source of strength for the pandemic economy.”
They wrote, “Cheap mortgages have ignited a housing rebound, driving sales of both new and existing homes, and putting money back into the pockets of borrowers who have been able to refinance.”
Access to outdoor space was the number one draw for potential homebuyers, followed by high- speed internet, and strong cell service, Crain’s said that the survey found.
What does that mean for new homebuyers?
As homes are selling more and more quickly--sometimes even before they are “officially” on the market, and sellers are sometimes deciding between dozens of qualified offers, it is the ones with the best terms that will “win” the house.
A report out this week on Realtor.com says that median home listing prices grew 12.2 percent over the last year. They said it is the ninth straight week of double-digit growth in asking prices, with the typical home in the country now listing $38,000 more than this week last year.
Additionally, the site reports that total inventory is down 38 percent, with the time the house spent on the market 14 days faster than last year.
Think about it--the average home is selling a full two weeks faster than it was a year ago, and this is a trend that is likely to persist.
Whether you are just beginning to look for a new home, have a specific home you want to make an offer on, have already signed a purchasing contract and need financing, or are interested in
refinancing, the best thing you can do is to fill out our Digital Mortgage application, so that you are ready to go.
In as little as 15 minutes you could have a pre-approval letter which can be helpful during the home buying process.
Contact me at firstname.lastname@example.org or rate.com/cathymaloney for more information.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.