With the lack of homes on the market there has been an increase in the price of homes in many metropolitan areas. Real estate is very local of course but nationally home prices were up nearly 7 percent from a year ago. In this sort of scenario, it is the first time homebuyers who are having the hardest time because of the lack of inventory. The reason for the lack of homes is because some homeowners are still underwater so they are unable to sell until prices go up. Another reason is the lack of new construction. Homeowners who want to sell cannot find suitable new homes so they are staying put and not putting their home on the market. The lack of homes on the market is helping to raise rents so investors are holding on to those properties as well. If you are looking to buy, the most important thing is to get pre-qualified so you are ready to go. Putting down a large deposit and agreeing to the seller’s requests will help you. Mortgage rates are remaining low which is good for the home shopper, but more documentation is needed today because of the tougher requirements so be prepared to have tax returns, pay stubs and w-2 forms when you meet with your lender. The more prepared you are, the better your chances are to get the home you want.
Leave a Reply