If you?re thinking about purchasing real estate, you?re probably wondering if now really is the best time to buy. After all, mortgage companies are advertising record low interest rates and several news outlets and industry experts are warning that home prices have hit bottom. The only direction left for rates and prices to go is up, they say.
So, if you want to snag a bargain should start your real estate search now? Perhaps. But before you set a home buying deadline and commit yourself to anything, keep a few things in mind. First of all, finding the best home at the most reasonable price will be more difficult for some buyers than for others. First time home buyers in particular may have more of a challenge in store, as the inventory of starter homes has been falling in the current market.
According to a recent article on MSN Real Estate (http://realestate.msn.com/is-now-really-the-best-time-to-buy), an inventory shortage has actually sparked a frenzy of purchasing activity in several areas. These housing market growth spurts have resulted in bidding wars and price increases, even for modest starter homes. Buyers with little to no money to put down may be stampeded by more qualified buyers with stronger offers to purchase ? yet another reason first timers may have trouble.
The inventory shortage contributed to price inflation of existing homes by 7.9% in June from the same period a year earlier, according to the National Association of Realtors. This information triggered some buyers to hit the ground running, thinking that if they didn?t act not, they might be priced out.
Be that as it may, this doesn?t hold true across the board. According to the MSN article, only a ?small fraction of buyers in certain markets or highly coveted neighborhoods? need worry.
Apart from considering your personal situation when determining whether to buy or wait, you should also keep your financing plans in mind. Interest rates have been close to historical lows, and some experts foresee them getting even lower, but that doesn?t mean you will necessarily qualify for the lowest rate available. Your credit standing, ability to make monthly payments and your down payment will all be factors. Also, you may qualify for special financing programs like FHA loans or no money down VA mortgages. Talk to a qualified mortgage specialist at AFR Mortgage to learn more.
We recommend speaking with a licensed and experienced real estate professional when considering purchasing a home.
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Real Estate Markets Making a Comeback
Homeownership Rates Continues to Decline