The 2015 Home Buyer's Catch 22
Hello Peeps! Back again, this time to talk about the Buyer's Catch 22. A lot of real estate agents would agree that 2015 will see the last of the leftovers from 2006 when it all came crashing down, replaced by stability and opportunity, but that doesn't mean it's quite out of the woods yet.
We started off with storms and other unfortunate hindrances, and all 2014 predictions were made about large numbers of millennial buyers coming out of the woodwork in 2015. Obama slashed private mortgage insurance almost in half, loosening lending policies came about, credit was improving and a rosy picture was painted.
Well, hold on a second. We're seeing more buyers; after all it is spring and many hoping for a tax return to help with a down payment. It's not quite what was expected though, why not?
A couple of things in addition to these fine younger folks holding a lot of student loan debt include house values that are rising faster than incomes.
The housing market will be driven by young households and minorities in the years ahead. But until incomes improve across the board and hurdles to credit access are eased, the housing market will continue to perform below capacity, some of the nation's top economists said yesterday at a forum at the National Association of REALTORS®' Washington, D.C., office.
Interesting that it's not credit, but income that is challenging would-be buyers while just a few years ago, many were seeking out low credit/bad credit home loans and participating in credit repair programs. After the big crash, it only makes sense that we are facing a totally different economy.
Another factor against the buyer these days is less inventory to choose from.
Advice for Today's Home Buyers
- Keep the credit strong; monitor your credit, keep low balances, pay on time.
- Expect a lot of competition, hesitating about getting a pre-approval from a lender can cost you opportunities with likely homes.
- The average discount one can expect these days is around 3-5%. All one has to do to confirm this is have their Realtor run comps on the homes of interest and show you asking prices vs. sold prices and can guide you further in making an appealing offer with better chances of success.
Juanita Limes - Your Greater Dayton Area Ohio Realtor - Give me a shout for all your real estate needs,
937-776-6903 or just email me.