homebuyer

Unlocking Homebuyer Opportunities in 2024

 
 

There’s no arguing this past year has been difficult for homebuyers.

And if you’re someone who has started the process of searching for a home, maybe you put your search on hold because the challenges in today’s market felt like too much to tackle. You’re not alone in that. A Bright MLS study found some of the top reasons buyers paused their search in late 2023 and early 2024 were:

  • They couldn’t find anything in their price range

  • They didn’t have any successful offers or had difficulty competing

  • They couldn’t find the right home

If any of these sound like why you stopped looking, here’s what you need to know. The housing market is in a transition in the second half of 2024. Here are four reasons why this may be your chance to jump back in.

1. The Supply of Homes for Sale Is Growing

One of the most significant shifts in the market this year is how the months’ supply of homes for sale has increased. If you look at data from the National Association of Realtors (NAR), you’ll see how inventory has grown throughout 2024 (see graph below): 

 
 

This graph shows the months’ supply of existing homes – homes that were previously lived in by another homeowner. The upward trend this year is clear.

This increase means you have a better chance of finding a home that suits your needs and preferences. And if the biggest reason you put off your home search was difficulty finding the right home, this is a big relief.

2. There’s More New Home Construction

And if you still don’t see an existing home you like, another big opportunity lies in the rise of new home construction. Builders have worked to increase the supply of newly built homes this year. And they’ve turned their attention to crafting smaller, more affordable homes based on what’s most needed in today’s market. This helps address the long-standing issue of housing undersupply throughout the country, and those smaller homes also offset some of the affordability challenges you’re feeling today.

According to data from the Census and NAR, one in three homes on the market is a newly built home (see graph below):

 
 

This means, that if you didn’t previously look at newly built homes as part of your search, you may have been cutting your pool of options by a third. Not to mention, some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home that fits their budget.

So, consider talking to your agent about what builders have to offer in your area. Your agent’s expertise on builder reputations, contracts, and more will help you weigh your options.

3. Less Buyer Competition

Mortgage rates are still hovering around 7%, so buyer demand isn’t as fierce as it once was. And when you combine that with more housing supply, you have a better chance of avoiding an intense bidding war. Danielle Hale, Chief Economist at Realtor.com, highlights the positive trend for the latter half of 2024, saying:

Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”

This creates a unique opportunity for you to find a home you want to buy with less stress and at a potentially better price.

4. Home Prices Are Moderating

Speaking of prices, home prices are also showing signs of moderation – and that’s a welcome shift after the rapid appreciation seen in recent years (see graph below): 

 
 

This moderation is mostly due to supply and demand. Supply is growing and demand is easing, so prices aren’t rising as fast. But make no mistake, that doesn’t mean prices are falling – they’re just rising at a more normal pace. You can see this in the graph. The bars are still showing prices increasing, just not as dramatic as it was before.

The average forecast for home price appreciation in 2024 is for positive growth around 3% to 5%, which is more in line with historical norms. That moderation means that you are less likely to face the steep price increases we saw a few years ago.

The Opportunity in Front of You

If you’re ready and able to buy, you may find that the second half of 2024 is a bit easier to navigate. There are still challenges, but some of the biggest hurdles you’ve faced are getting better as time wears on.

On the other hand, you could choose to wait. But if you do, here’s the risk you run. As more buyers recognize the shift in the market, competition will grow again. On a similar note, if mortgage rates do come down (as forecasts say), more buyers will flood back into the market. So, making a move now helps you take advantage of the current market conditions and get ahead of those other buyers.

Bottom Line

If you’ve put your dream of homeownership on hold, the second half of 2024 may be your chance to jump back in. Connect with a real estate agent to talk more about the opportunities you have in today’s market.

Read more at KeepingCurrentMatters.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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5 Confidence-Building Strategies to Empower First-Time Homebuyers

 
 

Are you a first-time homebuyer feeling overwhelmed and unsure about the home buying process?

Don't worry, you're not alone. Buying your first home can be an intimidating experience, but it's also an exciting milestone in your life. We want to help build your confidence as you embark on this journey towards homeownership. In this guide, we'll share five strategies that will empower you as a first-time homebuyer, so you can approach this process with knowledge and confidence. 

Educate Yourself
One of the most important things you can do as a first-time homebuyer is to educate yourself on the home buying process. This includes understanding the different types of mortgages, knowing what costs to expect, and familiarizing yourself with real estate terminology. By educating yourself, you'll be able to make informed decisions and avoid any surprises along the way. There are plenty of resources available, such as online articles, books, and workshops, that can help you learn about the home buying process.

Buying a home can be a fun and exciting experience, especially when you do it as a team. If you're buying with a partner or spouse, involve them in the process from the beginning. This not only allows for equal decision-making but also ensures that everyone is on the same page. When both parties are involved and working together, it can make the homebuying experience more enjoyable and less stressful.

Set a Budget
Before you start looking at homes, it's essential to know how much you can afford to spend. This will help narrow down your search and prevent any disappointment or financial strain later on. Take the time to sit down and calculate your monthly income, expenses, and savings. This will give you a clear idea of how much you can comfortably spend on a home and the associated costs.

When setting your budget, be sure to be realistic. Don't forget to factor in additional expenses such as property taxes, insurance, and maintenance costs. It's also crucial to consider your future plans and potential changes in income or expenses. While it may be tempting to stretch your budget for a dream home, remember that being financially comfortable is more important in the long run.

Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is an essential step in building confidence as a first-time homebuyer. It involves meeting with a lender and providing them with your financial information to determine how much they are willing to lend you. Pre-approval will give you a clear understanding of your budget, making it easier to shop for homes within your price range.

It's recommended to get pre-approved for a mortgage at least three to six months before you plan on purchasing a home. This will give you enough time to shop around for different lenders, compare interest rates and terms, and make an informed decision. Plus, having a pre-approval letter in hand will show sellers that you are a serious buyer and can potentially give you an advantage in a competitive market.

Work With a Real Estate Agent
As a first-time homebuyer, working with a real estate agent can be incredibly beneficial. They have the knowledge and experience to guide you through the home buying process and provide valuable insights into the local market. A good real estate attorney or agent will also advocate for your best interests and help you find the right home for your needs and budget.

However, not all real estate agents are created equal. It's essential to do your research and find an agent who has experience working with first-time homebuyers and comes highly recommended. Look for someone who is transparent, responsive, and willing to answer any questions you may have. Don't be afraid to interview multiple agents before making a decision, as it's crucial to find someone you feel comfortable working with.

Trust Your Instincts
At the end of the day, remember that this is your home, and it's essential to trust your instincts. Don't feel pressured to make a decision that you're not comfortable with, and don't be afraid to walk away from a deal if it doesn't feel right. Trust yourself and the knowledge you have gained throughout this process.

While you should trust your instincts, it's also essential to be aware of any warning signs during the home buying process. Some red flags to look out for include overly pushy real estate agents or sellers, homes with a history of major repairs or issues, and properties that are priced significantly higher than similar ones in the area. It's also crucial to thoroughly inspect a home and do your due diligence before making an offer to avoid any unexpected surprises. If something doesn't feel right, don't be afraid to step back and reassess the situation before moving forward. Though you may not have the experience, your instincts are a valuable tool in the home buying process, so don't ignore them.

Buying your first home is an exciting and significant milestone in your life. It's normal to feel overwhelmed or unsure, but by following these five strategies and staying informed and confident, you can successfully navigate the home buying process. Remember to educate yourself, set a budget, get pre-approved for a mortgage, work with a real estate agent, and trust your instincts. With these tools in hand, you'll be well on your way to becoming a confident first-time homebuyer! 

Read more at Rismedia.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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Tips for Younger Homebuyers: How To Make Your Dream a Reality

 
 

If you’re a member of a younger generation, like Gen Z, you may be asking the question: will I ever be able to buy a home?

And chances are, you’re worried that’s not going to be in the cards with inflation, rising home prices, mortgage rates, and more seemingly stacked against you.

While there’s no arguing this housing market is challenging for first-time homebuyers, it is still achievable, especially if you have professionals on your side.

Here are some helpful tips you may get from a pro.

1. Explore Your Options for a Down Payment

If a down payment is your #1 hurdle, you may have options to give your savings a boost. There are over 2,000 down payment assistance programs designed to make homeownership more achievable. And, that’s not the only place you may be able to get a helping hand. While it may not be an option for everyone, 49% of Gen Z homebuyers got money from loved ones that they used toward a down payment, according to LendingTree.

And chances are you won’t need to put 20% down (unless specified by your loan type or lender). So be sure to work with a trusted mortgage professional to explore your options, find out how much you’ll really need, and learn about any guidelines on getting a gift from loved ones.

2. Live with Loved Ones To Boost Your Savings

Another thing a number of Gen Z buyers are doing is ditching their rental and moving back in with friends or family. This can help cut down your housing costs so you can build your savings a whole lot faster. As Bankrate explains:

“. . . many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”

3. Cast a Broad Net for Your Search

When you’ve saved up enough, here’s how a pro will help you approach your search. Since the supply of homes for sale is still low and affordability is tight, they’ll give you strategies and avenues you may not have considered to open up your pool of options.

For example, it’s usually more affordable if you consider a rural or suburban area versus an urban one. So, while the city may be livelier and more energetic, the cost of living may be reason enough to look at something further out. And if you consider smaller homes and condos or townhouses, you’ll give yourself even more ways to break into the market. As Colby Stout, Research Analyst at Bright MLS, explains:

“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”

4. Take a Close Look at Your Wants and Needs

And lastly, an agent can help you really think about your must-have’s and nice-to-have’s. Remember, your first home doesn’t have to be your forever home. You just need to get your foot in the door to start building equity. If you want to buy, you may find making some compromises is worth it. As Chase says:

“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”

An agent will help you prioritize your list of home features and find houses that can deliver on the top ones. And they’ll be able to explain how equity can benefit you in the long run and make it possible to move into that dream home down the line.

Bottom Line

Real estate professionals have expertise on what’s working for other buyers like you. Lean on them for tips and advice on ways you can get ready to buy. As Directors Mortgage says, with that support you can make it happen:

 “The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach. By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”

Read more at KeepingCurrentMatters.com

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

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Search Homes in Oklahoma

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