As we’ve mentioned in the past, the real estate market has finally started to gain a little bit of momentum again and more and more homeowners are looking to buy. So for those of you who have decided that now is the time to start looking for a new home, there are probably a few things that you want to consider before beginning the search.
According to a recent article from Forbes, there are four major real estate trends to look out for during the summer of 2013:
- Low Mortgage Rates – The 30-year fixed mortgage rate currently rests at 3.78%, which is close to being the lowest percentage Zillow Mortgage Marketplace has seen in history. Zillow’s director of mortgages, Erin Lantz, states that though rates may increase here and there, they aren’t going to shoot up any time soon. Lantz goes on to say that even If the Federal Reserve scales back the stimulus program, rates will remain low for the rest of the year, if only to accelerate the recovery of the housing market.
- Less Choices – Less than 2 million homes were for sale across the U.S. as of February of this year, which adds up to a supply of less than five months’ worth of homes on the market. During the same period last year, the supply was at 6.4 months, which means that in a dozen markets, there is less than a three-month supply of homes. If predictions are right, the rise in home prices should lead to more inventory in the market.
- Home Stalking – While there may not be enough homes for sale currently, that doesn’t stop the demand from home buyers from increasing. It’s because of this that prospective buyers are finding less conventional ways of finding the perfect home. This can include anything from knocking on doors of homes that catch their eye, to writing handwritten notes and tracking down homeowners, hoping that they may be willing to sell, regardless of whether or not their home is up on the market.
- Bidding Wars – As the real estate market rises across the U.S., bidding wars are becoming more and more expected with each deal. For those first-time buyers, it’s important to be aware of this when looking for entry-level properties in areas where investor demand is high. Be mindful before you make your bid.
As long as you keep yourself educated on what to expect as you jump into the real estate market from a buyer’s standpoint, you should find that this summer could bring some interesting prospects. 2013 is shaping up to be the comeback year of the seller so be smart with your choices.