Better Affordability Brings More Buyers

 The first quarter of 2023 saw 56% of prospective home buyers actively in the process of purchasing a home. This is up from the fourth quarter of 2022 at 46%. This is due to the improved affordability expectations.

With the improved affordability, buyer demand is up as well as the competition. Unfortunately, this leads to potential buyers having a harder time finding the home of their dreams. In fact, 71% have spent 3+ months searching for a new home which was up from the 65% reported in the fourth quarter of 2022.

As for each region, the number of prospective buyers actively looking for a home rose in every region in the first quarter of 2023. The Northeast went from 50% to 63%, Midwest from 42% to 45%, the South from 47% to 51% and the West from 44% to 66%.

These results are derived from the Housing Trends Report (HTR). This report is produced by the National Association of Home Builders’ Economics team. The team measures prospective home buyers’ perceptions about the affordability and availability of homes for sale in their market. The Housing Trends Report runs every quarter to track changes in buyer’s perceptions over time.

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If Your Considering Refinancing Your Home Here Are Six Important Things You Need To Know

  

There are several reasons a home may want to refinance. Homeowners can use the new loans to lower their interest rates, pay off mortgages at a faster pace or turn their home equity into cash. Before choosing this path, you need to makes sure that refinancing is right for you. Here are six things to consider to help you with the answer.

1. Refinancing is a process

Refinancing typically takes 30 to 45 days from start to finish. Once you choose a lender they will need to assess your income, assets and credit history. You will need to gather all your documents such as pay stubs and bank statements. An appraisal will also be done for the new mortgage. Make sure to clean your home and make sure your landscaping is in top shape.

2. Time is of the essence

Currently, we are at historic lows and this is a perfect time to refinance. This may not always be the case. It is smart to lock in a low monthly payment as well as a low rate. Once rates go up, the savings might not be there.

3. There are many reasons to refinance

A low interest rate is a big reason to refinance, however, it is not the only reason. The term of the loan is another factor, if you’re looking for a lower monthly outlay, a long-term loan will likely work best. This is not the case if you want to repay as soon as possible because you might get locked into a higher rate. Terms are important but other reasons also include changing your loan type, cashing out your equity or removing a name (in cases such as divorce).

4. You're not tied to your existing lender

You can always go with a new lender when refinancing. Once you have paid your original mortgage off with your lender you are free from obligation to them. This gives you an opportunity to shop around for the best terms and rates.

5. You can reinvest in your existing property

Many homeowners take the cash out equity and turn around and make improvements, renovations or additions to their home. These changes not only benefit your living situation but also can add more value to your home.

6. The decision is yours alone - so make it an educated one

Everyone has different goals and personal interests in life. This is also true with home purchases and refinancing. Refinancing is a personal decision and all options should be explored. If you are thinking of refinancing, contacting a lender who can help you with all aspects of home refinancing is the first smart choice of the process.

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What Are the Costs of Home Ownership?

 

Purchasing a home is one of life's major events. Many believe it is out of reach financially because of the competitive market and high cost of homes. If you are up for the challenge, homeownership can be both personally rewarding and financially rewarding. There are several long-term financial benefits of owning a home.

There are many concerns when purchasing a home, in fact, a study showed that over half of millennial homeowners have at least one regret about purchasing their home. These regrets included not being happy with their rate, not being prepared for maintenance costs, high monthly payments and high home prices.

This should not detour you from taking on the financial responsibility of homeownership. In order for it to be a confident decision, get the aid of professionals in the industry who can help you fully understand the process and what surprising costs you may occur.

There are a lot of reasons why renting is best for some such as short-term living arrangements, others trying to improve their credit scores, and some people are just not in the financial position to take the plunge into buying a home.

If you can take the plunge then it is wise to do so. When you have to renew a lease, the rent usually increases around 3 - 5% per year. Also, the money you pay for rent goes into someone else's pocket. If you own a home, you are paying into a mortgage on a home and will obtain equity.

Remember even if there are maintenance costs, every dollar you put into your home adds value. In the long run, homeownership is usually less expensive than renting. If you are in the market for a home, contact your local agent who can help you with getting a home for your needs at a great value.

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