1. Selling your house will be easier then buying a house
Inventory of all homes for sale is down over 35% over the last four years.
“We are in a time of short supply,” sellers often get multiple offers due to the low inventory.
Of course that means it tough for people looking to buy a home.
The inventory of starter homes, or the homes that are in the least expensive, are probably at the lowest supply they have been in four years.
The February S&P/Case-Shiller report echoed those exact concerns. similar inventory concerns.
2. Finding a new home may be the answer
shoppers should consider buying a new home or a new home off a plan.
Rather than deal with bidding wars, he said you should turn to new inventory, specifically homes off a plan.
The inventory of existing homes continues to fall. Low existing inventory likely pushes prospective buyers away from existing homes towards new homes.
3. With all the rent increases over the last 4 years, its cheaper to buy then to rent.
Even though inventory is down and buying a home it is still cheaper. It is better to buy a home than rent over a 5-year period. And it gets cheaper after that
4. Don’t panic over possible interest rate increases
As it stands, interest rates are nothing to worry about because what the Fed does is only loosely tied to mortgage rates. In addition it is doubtful there will be anything more the a symbolic increase in interest rates over the next 2 years.
Even if mortgage rates do go up, in places like California and Florida, rates would have rise to 4.5% to 5% to roughly equate the cost of renting.
And in the rest of the country, “Rates would have to reach 6% to 7%, and we are a long way off from interest rates at that level. Keep an eye on it but don’t fret.”
5. Buyers should be aware of bargain homes
Trulia did a study earlier this year, looking at where properties listed with the word bargain, or similar words, are actually priced at a discount. Only 55 of the 100 biggest U.S. housing markets where properties described as a “bargain” are actually listed for a lower price.