The sunniest time of year, when the sun shines brightly, is certainly a great time to explore new neighborhoods and envision future backyard parties during visits. If you’re planning to buy a home this summer, it’s important to understand the housing market before beginning any serious purchase. You need to know what the real estate market is like for buyers right now and what you can do to end up with the best house at the best price that fits your budget.
Owning a home is an investment in your future, and with that in mind, you want to make sure you make informed decisions so you can get the best deal possible. The housing market in 2018 should be as strong this summer as it has been all spring. List prices and existing home sales are up this year, but there are also advantages to searching for homes right now. Here are some of the facts and tips to help you make the most of this year’s summer housing market.
SUMMER MARKET DATA
DURING THE SUMMER PRICE DROP: Although summer is peak home buying season, it’s not crazy as prices drop from May to October. Anyway, if you stay until the end of August, then you could find a really good deal, that is when almost 14% of the listings get a discount.
Private mortgage insurance is becoming more reliable: PMI or Private Mortgage Insurance getting cheaper after PMI MGIC and Radian lenders cut their rates this spring; is excellent financial news for homebuyers. That will make most of these PMI companies competitive with each other, which will bring them all down as a result. Less than 20% down payment earns home buyers PMI. It means it will be cheaper for some buyers to get into houses earlier.
TIPS FOR BUYING A HOME FOR SUMMER 2018
NO DISCOUNT OLD LISTINGS: With homes flying off the market in a matter of days due to stiff competition, it’s easy to think that a listing that’s a week or so old is a red flag. But keep in mind that this is not always the case. Often it’s because the buyer has second thoughts and backed out of a deal for a house in mint condition. But thanks to the assumptions homebuyers make about older listings in crowded markets, the delay can drive the price down.
There are more of these on the market. The number of homes on the market is shrinking, but there are still 8.3% more homes in need of repair than there were six years ago. If you’re determined not to have to fix your top to be prepared to move quickly, then there will only be a couple of options at a time. And when new listings appear, it will be quite fierce.
KNOW THE NEIGHBORHOOD: The good thing about the competitive market is that it tempts you to bid on any available property that fits your criteria, but if you’re in the wrong neighborhood, you may never want to buy the house. It’s best to take some time and explore the community before making an offer. You can even find out what your future neighbors have to say about the area by contacting them.
MAKE THE STRONGEST OFFER: To stay in the market, make the strongest offer, even if your offer is not the highest because now is not the time for low offers. To be sure, making a cash offer can be difficult for many homebuyers, but there are some ways to make a solid offer that don’t require a lot of money. Substantial eventualities, like a shorter closing or inspection period and writing a great offer letter, can help your offer stand out.