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Best time to buy a home and is the housing market good for buyers today

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When Jarvis Clayborn and his wife Renada were pre-approved for a mortgage in February, they were excited to start shopping for their first home in Houston, Texas. But that excitement soon turned into shock and frustration. They found that they couldn’t compete with full cash offers, which are often tens of thousands of dollars higher than the list price of a home.

“We weren’t really willing to pay the price people were looking for and the price people were paying,” Jarvis Clayborn told ABC News. “Most homes didn’t even have the opportunity to bid. As soon as they hit the market, they would just be snatched.”

Jarvis Claiborne, who works in the oil and gas industry, and Renada, a private detective, decided to leave home search in June as mortgage rates exceeded 6%.

Tinesha Feiton, a single mother from Brooklyn, New York, has signed a contract to buy a three-bedroom home in West Orange, NJ, after two years of home hunting and highs.

“It feels a little surreal,” Feyton told ABC News about finally getting the seller to accept her offer. Feiton, an information technology consultant, is $ 46,000 above the asking price of $ 479,000.

“I’m still a little worried because I’m just thinking about myself. Well, the house is going to appreciate its value. You know, I know my first house is actually a lemon I don’t want to be, “she said.

Fayton said it was important for his five-year-old son Mason to settle in his house in time to start kindergarten at his new school this fall.

Homes of the National Association of Real Estate Agents-According to the Affordable Price Index, record home prices and high mortgage rates have made May the most expensive month to buy a home since 2006. The index incorporates median existing home prices, median family income, and average mortgage rates. According to the NAR, the median home price in the United States reached a record $ 407,600 in May. This is because mortgage rates have more than doubled since January, reaching their highest levels in 13 years.

Assuming a 30-year fixed-rate mortgage and a 20% down payment, according to NAR, this would result in regular monthly mortgage payments of $ 1,842 in May, up from $ 1,297 in January. There are new signs that the housing market is gradually becoming more buyer-friendly, despite rising housing funding costs.

Second-hand home sales in May fell for the fourth straight month as buyers gave up and forced sellers to lower their asking prices. Realtor.com saw a 21% increase in homes for sale in June for the first time in three years, with more than one in five homeowners lowering asking prices in May, according to real estate agent Redfin. Said that. Compared to a year ago.

Daniel Hale, chief economist at the real estate company, told ABC News that there were two reasons for the increase in inventories.

“One has more homeowners who decide it’s time to sell their home, and another reason is that buyers become a little more selective as the cost of homes rises. That’s what she said.

According to Redfin, the bidding war has slowed, with Google searching for “houses for sale” down nearly 14% from a year ago.

Sarah Drennan, Executive Vice President of Terrie O’Connor Realtors in northern New Jersey, said: “Currently, they still have a lot of offers, but it’s less than 10.”

According to the Mortgage Banking Association, mortgage applications fell 16% in June and are now less than half of what they were a year ago.

As Drennan asks sellers to “move prices” and the era of getting them is beginning to fade, more and more sellers are aware of the new limits of their pricing power. I said it was.

“We haven’t seen any price cuts, only slowdowns in price increases,” Drennan said. “Therefore, prices are still rising, not the double-digit rates we saw just a few months ago.”

Home prices are still on the rise nationwide, but Realtor.com has found that prices are starting to fall in many small Rust Belt cities. In Toledo, Ohio, home prices fell 18.7% in May. They sank 15.4% in Detroit and fell 13.4% in Pittsburgh, PA.

Demand for second homes is also showing signs of softening. Patty Magie has been selling homes for 30 years in the lakes of the Pocono Mountains, Pennsylvania. She told ABC News that she had never seen housing demand like in the heyday of a pandemic.

“People bought invisible places and abandoned assessments and home inspections,” she said.

Longing for more space to go to work or school in remote areas, Magie remembers offering a home tour to buyers via FaceTime when chasing a few homes available. increase. That scenario is changing.

“Current inventories are doubled in March and April, but still about one-third three to four months ago. Price cuts have increased and bidding wars have diminished,” she added. ..

Potential buyers who favor renting and give up searching aren’t as reassured, if any. In fact, according to Miller Samuel, Inc, rental prices exceed the monthly cost of housing loans in some markets. Real estate appraisers reported that the average rental price in Manhattan reached $ 4,000 per month in June.

Jonathan Miller, CEO of Miller Samuel, told ABC News: “It’s interesting because the city’s office towers are two-thirds free, but we still see record leasing activity in the home leasing market.”

Still, experts say that timing the housing market for its “perfect price” can backfire for some buyers.

“If the timeline is flexible, we may be able to wait and negotiate with the seller,” Hale said. It takes time to find a house. ”

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