According to data from Realtor.com, the housing stock is at its highest level in 2021, which means buyers will have more homes to choose from this fall and a less competitive housing market.
In addition to a higher inventory, the share of sellers who made price adjustments rose for the second consecutive month in September, signaling that sellers must lower their prices to compete with buyers. In keeping with seasonal trends, homes last a little longer on the market at 43 days, giving buyers more time to make a decision.
This will create a favorable environment for future homeowners who wish to purchase a home while ensuring a low interest rate. Mortgage rates have crossed 3% for the first time since June, according to Freddie Mac, but they are still close to their historic lows.
Despite this good news for buyers, stocks are still historically low due to supply issues following the COVID-19 pandemic. Compared to past years, buyers will still be faced with a limited inventory and therefore more competition. If you’re planning on buying a home this fall, read on to learn tips for competing in a seller’s market.
When you’re ready to start shopping for your next home, visit Credible to compare mortgage rates without affecting your credit score. This way you can know that you are getting the lowest possible rate for your situation.
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How to buy a house in a hot market
A higher inventory for September is good news for buyers, but that doesn’t mean buying a home will be a walk in the park. Potential homeowners should be prepared for healthy competition in the housing market this fall. Here are some things you can do to prepare for the home buying process.
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Be flexible with your schedule and home buying schedule
According to seasonal trends, fall is not a particularly popular time to buy a home. This can reduce competition, but you should always be prepared to visit homes as soon as they go on sale if you are serious about buying.
Arrange your work schedule so that you can be among the first buyers to visit new listings and stay in close contact with your real estate agent to stay on top of the new home inventory.
Being flexible can be even more profitable if you don’t have a firm closing date. Giving the seller more time to move and determine their housing terms can help distinguish your offer from others in a bidding war.
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Come prepared with a pre-approval letter
Having your mortgage financing in order shows that you are a serious buyer. Plus, with mortgage rates stable near historic lows, you can take action now to secure a good mortgage rate on the purchase of your home.
Fortunately, getting pre-approved for a home loan is easy with an abundance of online tools at your disposal. You can compare mortgage pre-approval offers from several mortgage lenders at once in the Credible Market. It won’t affect your credit, and shopping around can ensure you get a competitive mortgage rate.
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Look at homes below your budget in case you need to offer above the list price
Competitive accommodation The market can cause buyers bidding well above the asking price to get their bids accepted. When looking at homes in your price range, focusing on the low end can free up money if you have to offer more than you initially expected in terms of upfront costs.
Keep in mind, however, that just because you’re bidding above the asking price doesn’t mean the house is worth so much. If you put in a higher bid and the house doesn’t value the full amount, you might have a hard time getting a mortgage and you might be asked to cover the difference in cash.
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Use a mortgage calculator to see how much you can afford to buy a home
The median home price in September was held at a record high of $ 380,000, according to data from Realtor.com. While that may seem like an unfathomable sum, monthly payments can be more manageable than you might think, especially given the skyrocketing cost of rent.
Assuming a 20% down payment and an interest rate of 3.36%, the monthly payment on a 30-year mortgage would be less than $ 1,400. Of course, if you haven’t saved tens of thousands of dollars for a down payment, you might be forced to put in a lower amount and pay for private mortgage insurance (PMI).
Use Credible’s Mortgage Calculator to estimate your monthly mortgage payment based on the price of the homes you are considering. This can help you better understand which homes are out of your budget and which you can afford.
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