Finding a great deal for a home in the current economy can prove to be a daunting task, when considering the primary concerns of home buyers in today’s market. However, many signs are pointing to a strong and growing North Texas housing market, and snagging a great deal is possible. With some preparations and professional advice from a real estate professional, you can navigate the market and get the best deal possible for the property you are seeking to buy. Following are a few of the most common concerns currently affecting home buyers in the Garland, Rowlett, and Rockwall market areas.
“I won’t find a home I like.”
This worry is related to the fear of rising prices. Residential home buyers are fearful that an increase in real estate prices will put their ideal dream homes out of their price range. This is why it is important to be aggressive about seeing properties as soon as they are available on the market and to work with a knowledgeable real estate agent whose advice you trust. Don’t be slow in coming to the realization of what homes are actually selling for. Be ready to make an offer if you do find a house you like. With today’s market environment it is a mistake to sit on the sidelines.
Worry Over Mortgage Rates
Many home purchasers in today’s market have a fear that mortgage rates will increase. During the last quarter, rates have actually been at historic lows over the past 19 months. However, in spite of the historic lows, there is concern from many economists that inflation could in the near future cause a spike in rates. My advice is if you are considering purchasing within the next 12 months, consider moving that date up and get started now.
The likelihood of competition for a property is increased with lower supply and higher demand. The trends over the last several months indicate an upward trend in residential home prices. This is due in part to supply and demand. When supply shrinks, demand tends to rise, and thus prices increase.
Residential inventory trends in Garland have been more dramatic with a -33 percent decline in listings since March of 2011. Rowlett and Rockwall have shown a steady but not as dramatic of a decline as Garland, beginning in June 2011 to current date. The trend points toward a rise in prices, which is currently what the market is experiencing.
“I won’t qualify for a mortgage.”
Of all the worries affecting today’s buyers, this is the one where the buyer has the most control. Our advice? Consult with a real estate professional who can recommend a credible mortgage lender. Getting paperwork in order and obtaining loan approval should be the first priority before looking at properties or making a purchase offer. Having loan approval in place provides you with a better negotiating position when making that offer on your dream home.