When it comes to home buying, it can seem like there’s just so much information out there that you couldn’t possibly keep up with all of it. Where would you find the time to learn all of this, you wonder?
And since when are first time home buyers supposed to be experts in everything, anyway? Well, when it comes to home buying there definitely are a bunch of trends out there that constantly shift. Here are five that you can’t afford to ignore. Read on to find out more and be a smarter home buyer. By the way, if you need more tips for the Chandler area specifically, check out this website for more detailed recommendations.
1. Increasing Interest Rates
You may not even know that much about home buying or the market, but I bet you know that if your interest rates are going to go up then that is bad news for you and the rest of the home buyers out there. Interest has been phenomenally low for a while, hitting record lows over the past ten years.
The bad part now is that the key interest rate was raised by the Fed in mid-December– and they’re also going to make an incredible four more raises in the year. That means higher interest rates for borrowers and a worse financial time for your loans. It’s never been a great time to buy a home, but you’re going to need to be extra vigilant and thrifty because those increases are going to mean more money for you and a haste to pay it off A.S.A.P.
2. More Renters That Want to Buy
Rental prices are going to be going up significantly this year. Well, with so many people who are renting paying just as much as they would for a home, that’s going to be a big problem. They basically are deciding that hey why not go and buy a house if I’m going to be paying a bunch of cash every month for some place that I don’t even own?
That means more people in the market which means more competition for you buying a home and even more competitive bids and prices. Not so fun, but oh well.
It’s that dreaded word: Millennials. This time they have come to mess up your house buying game. They want to buy homes, with thirteen percent saying that they’re going to do so within the next year and even more saying that their goal is to buy a home in the next two years. They’re the biggest consumers around, so their numbers as well as their buying power means that this could be trouble.
4. Good Prices
Surprised to hear this? We are a little bit too. However, the housing prices are going to go up just five percent or less this year, which may mean that the higher interest rates are going to be off set a bit. Lower prices may be good for home buyers, so keep your fingers crossed. Every year is different, and prices and rates will always vary.
5. Keeping Up with No One
Another bonus of this year’s trends may be that people are choosing functionality over style or impressiveness. No one is keeping up with the Jones– they’re just doing what’s best for them. It’s a beautiful thing, huh?