Did you consider buying a home last year, but ended up not following through? Are you now feeling like you missed out on your opportunity to buy? You aren’t alone!
Many people were trying to buy a home at the same time you were, due to the record low interest rates last year. Unfortunately, we were in a sellers’ market, meaning many people were looking to buy, but not many homes were on the market.
Let us tell you, you didn’t miss out on a great market! The current market is easier for buyers, compared to last year. Compared to this time last year, more homes are listed for sale, says Lexie Holbert, home and real estate expert with Realtor.com.
“For prospective first-time home buyers who feel they missed out on the frenzy, there’s a silver lining — they also missed out on the incredible competition buyers faced this year,” Lexie says.
Below we have listed three encouraging signs that the housing market will get better in the coming months for first-time homebuyers.
1. Housing Inventory is Rebounding
The number of homes for sale still has a long way to go until the housing market becomes stable, but the market is looking better for those looking to buy a home. Zillow found that inventory levels recovered by 3.9 percent in May and 3.1 percent in June. This rise in the housing inventory gives buyers more bargaining power.
2. Other Buyers Are Fatigued
The past year has been crazy for many first-time homebuyers. Homes were on the market for only a few days and received multiple offers. On the other hand, a lot of aspiring buyers are burning out.
“By now, everyone has heard about how challenging the market is for first-time buyers, and lots of would-be buyers have dropped out,” says Thomas Huisking, a real estate agent with Sotheby’s International Realty, Santa Monica Venice Brokerage.
If you would like to buy a home in the current market, we advise that you get pre-approved. Being pre-approved not only strengthens your offer, but also gives you a better idea of how much home you can afford, and it will uncover any potential issues you may come across. You don’t have to feel the need to purchase the same amount you are prequalified for, but it will give you a good feel of your buying power.
3. Interest Rates Are Still Relatively Low
We can’t predict what the interest rates will be when you’re ready to buy since the rates change day-to-day. However, interest rates are currently holding steady in the area of 3% through August 2021. That being said, rates are likely to rise slowly, but consistently throughout 2021, with predictions of rates reaching 3.4 percent by the last quarter of 2021 and 3.8 percent by the end of 2022.
As a potential homebuyer, you were possibly thinking you missed the great housing market of 2020. That isn’t so much the case. During 2020 we hit some record low interest rates, but don’t worry! This year is still proving to be a great time to buy! If you are looking to buy a home soon, connect with our team today and we can get you started on the journey.