If you’re looking for a new place to call home, the current economic environment presents a great opportunity; and it may just be an opportunity that will soon pass us by. Not to mention spring is in the air, which means the official-unofficial buying season is upon us.
Why now is the Perfect Time?
So what makes it a good time? For one thing, interest rates are still at historically low levels. Additionally, housing markets across the country are in a low inventory and high demand environment. The number of homes for sale is simply not keeping up with the demand; and of course, the natural consequence of this is increasing house prices.
The Monthly Survey of Real Estate Agents was released by Credit Suisse in February, and the report shows that home prices are increasing in all 40 of the largest markets it tracks. 2005 was the last time this occurred.
This environment is of course ripe for a season of frenzied buying, to the point that some home sellers are receiving multiple offers on their homes, often times on the first day they are listed. In the Albuquerque market this is especially true in certain price ranges, such as between $200,000 and $300,000. We haven’t seen this type of activity in over 5 years. The good news here for buyers is this activity will likely lead to more folks putting their homes on the market.
So while it is currently a great time for buyers due to the low rates, relatively low house prices and, hopefully, more homes to choose from, things could quickly shift from a buyer’s market that has been prevalent over the last few years to a seller’s market. Even with a market that seems to be on the verge of a shift, it’s hard to imagine a better time to buy a home than what we’re seeing right now.
How Should You Proceed
If you decide that now is the time for you to begin your home search, there are a couple of people you’ll want to be sure and align yourself with prior to starting the search. First, you’ll want to sit down with an experienced loan officer to review your financial position and make sure that your finances are in order. It will behoove you greatly to obtain a mortgage pre-approval (if not a full approval – more on this to come in a future post) prior to looking for homes. Home sellers are much more likely to entertain your offer if they know you have gone through the process of having your finances approved by a lender.
Second, you’ll want to begin building a relationship with a respected realtor. Most likely you’ll be spending a lot of time with your realtor and so you’ll want them to be someone you enjoy being with as well as someone you trust. We’d be happy to introduce you to one or more of the realtors that we’ve worked with over the years and have grown to trust. Either way, be sure and choose wisely as your realtor will be guiding you through your home buying adventure.
About Two Bald Mortgage Guys
Ken Blanchard, one of the country’s premier business leadership authors, says in his latest book, “To keep customers today, you can’t be content to merely satisfy them; you have to give them legendary service and create ‘raving fans’ – customers who are so excited about the way you treat them that they tell stories about you.” In everything we do, this is what we envision. We see people such as yourself being so enthused with the process and service we provide that you will become a raving fan for us, telling stories to people of what you just experienced.