1. The Competition is Fierce
Housing affordability is at record highs, this is due to falling home values and low mortgage rates. Buyers realize the opportunities and are taking action. Mixed with sinking inventories of good homes listed for sale, the competition is getting more fierce.
Investors are snapping up bargain prices, both in short sales, REO’S, and conventional sales. Most are all-cash deals, which means greater competition for traditional home buyers too.
Rents are going up, and as long as there are properties at the level where investors can get the positive cash flow, they will continue to invest, which has affected the first-time home buyers, as they may find increased competition from investors in trying to snag some of the best deals on the market.
2. More and more Renters are becoming home owners now.
Recent surveys have shown that buying a home today is more affordable than renting. Therefore, more renters are finding home ownership more enticing.
Certainly prices have continued to fall nationally, but rents have been rising….so this would be the lowest price-to-rent ratio that we’ve seen!
3. Mortgages may be a little pricier.
Fannie Mae, Freddie Mac, and the Federal Housing Administration recently have raised their loan fees, which means home buyers can expect to pay a little more for their mortgage this spring.
Those who don’t have credit scores in the high 600s to low 700s may be forced to go the FHA route, which means they will be stuck with the higher fees.
Buyers with smaller down payments can expect to pay more for FHA mortgage insurance premiums, which have risen to 1.75 percent of the loan total. Bankrate.com shows an example illustrating the higher fees: A borrower who takes out a $200,000 FHA loan will likely have to pay about $3,500 for mortgage insurance upfront. Prior to the increase taking effect, borrowers would pay about $2,000 for that same loan amount.
Borrowers with higher mortgages can expect higher fees too. The FHA announced that in June it’ll increase its annual insurance for mortgages more than $625,500. “A borrower who lives in a high-cost area and takes out the maximum $729,750 (which is the FHA limit for high-cost areas) will pay $912 each month in mortgage insurance alone,” Bankrate.com reports.
IN SPITE OF ALL THE CHANGES….OVER 12,575 HOMES SELL EVERYDAY….NATIONALLY!
AND 8,300 BUYERS RECEIVE A MORTGAGE!
HOMEOWNERSHIP….A TRADITION WE MUST PRESERVE!
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