Homebuyers are expected to outnumber home sellers this spring, which will likely drive up asking prices, says Lawrence Yun, chief economist for the National Association of Realtors®(NAR).
"Given that prices are rising, more people will be pushed on the borderline of conventional mortgage limits and may need a large downpayment or a jumbo mortgage," Yun told The Wall Street Journal.
Nationwide, the median price for an existing single-family home in January was $213,800 – up 8.2 percent from a year ago, according to NAR's housing data. Home prices are moving at the highest rate since April 2015.
"There's a decade of pent-up demand," says Bob Walters, chief economist of Quicken Loans.
One piece of good news for homebuyers this spring: Mortgage rates are expected to stay low, with the 30-year fixed-rate mortgage not likely to rise above 4 percent before May, says Keith Gumbinger, vice president of HSH.com, though the long-term outlook for mortgage rates is less certain.
As such, lenders predict that the spring season will be a busy one.
To avoid closing delays, buyers need to get into the market sooner rather than later, says Paul Anastos, president of Mortgage Master in Walpole, Mass., a division of loanDepot. Like a traffic jam, "every minute later you leave costs you 10 minutes," he notes. "Every day, the audience looking for houses increases exponentially."
Anastos also urges homebuyers to get preapproved for a loan prior to home shopping – a step above pre-qualification. He says that alone could save home shoppers up to 10 days in the closing period. And "If you find a home this weekend, you look highly competitive."
Source: "This Spring, Expect Higher Home Prices," The Wall Street Journal (March 10, 2016)
Courtesy of Floridarealtors.org
Call Alex Brik today to get in touch with a Lender to start the pre-approval process.
Author:Victor DeFrisco Phone: 561-951-3759 Dated: April 20th 2016 Views: 442 About Victor: ...
View our latest blog posts in your RSS reader. Click here to access.
We are a full service real estate brokerage with over 100 agents to serve you. Let us be your real estate resource. Regardless whether you need to buy or sell now, or sometime in the future, let us help you. We are no pressure and will always try and help. Contact us at 561-792-3948 now.
"Thu, May 19, 2016
Joseph Schneider went above and beyond the capacity of a realtor. He facilitated in making the process of us purchasing our first home less stressful because of his knowledge and experience. Joseph made sure that every aspect of our transaction was handled in a professional and timely manner. Whatever we asked for in our search for the perfect home, he made sure that he did his due diligence. Joseph was referred to us and we would most definitely refer him to anyone who is looking to purchase or sell a home."