Buying your first home can be an overwhelming and exciting experience. On the one hand, you are about to reach an important milestone, but on the other, you also risk making a financial error.
So, before you make this difficult decision, it’s important to research market trends and learn about the industry. This article reveals some fall housing predictions for 2021 and tips to help you become a first-time homeowner.
Buying Your First Home in the Fall of 2021 – What to Expect
Buying your first home does not have to be complicated as long as you do your research. You can take the time to learn about fall housing predictions and ensure you invest at the right moment.
House Pricing Predictions
The pandemic left a significant mark on the housing market. Earlier this year, the median listing price saw an 8.6% increase in the last week of July. Although, as we shift towards fall, the rate of increase in listing prices is predicted to decrease gradually. That said, the property prices are still profitable for the sellers.
If you are buying your first home, you can research the current house prices in your desired neighborhood. Then compare current prices with those from earlier this year. If there is a fall in the price, making an offer might be a good idea.
Competition in the Market
This year has seen a new record for the number of homes being put on the market. However, earlier this year, there were more interested buyers than available homes. This created heavy competition, which resulted in higher home prices and, in some cases, bidding wars.
Now, however, it seems that the buying frenzy has started to settle down. This fall, there has been an increase in listings. This has removed some of the pressure on the buyers, as the competition has decreased.
However, it is still a seller’s market. For this reason, it is important to make a strong bid when placing an offer on a home.
Since November 2018, mortgage rates have, for the most part, been steadily declining. In 2020, rates hit a historic low. In 2021, rates have stayed low for the most part, but are slowly creeping upwards. The National Association of Realtors predicts the mortgage rate average to be 3.1% this year. Mortgage Bankers Association expects the rate to reach an average of 3.3%.
If you are buying your first home, you may be able to benefit from the current mortgage rates. Although the rates have increased since January, they are still lower than what they were in previous years. So, if you apply for a mortgage now you may be able to benefit from a reduced rate.
Investing in your first property can be nerve-wracking. But the more informed you are, the more confident you will feel in your decision. It’s vital to research all your options and learn about market trends as much as possible. This way, you’ll feel confident knowing you’re making the right decision.
Get in Touch with the Experts at Mortgage Solutions Financial
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