While lenders have become more strict in the last decade, people who have a solid credit history can still secure a good mortgage. With mortgage rates continuing to hover around 4%, the housing market continues to be a strong one. For buyers, this means that you can afford a home that you may not have been able to a few short years ago. For sellers, low mortgage rates can cause an inventory shortage of homes available for sale. It is time to invest in real estate, as home values continue to rise in most areas. If you are ready to sell, you will be able to get your asking price in most cases.
The Real Estate Market is Stable
Tighter lending has helped stabilize the real estate market. While homes have seen moderate growth in value over the last several years, this growth is expected to slow down in the next year. While homes aren't expected to decrease in value, home values are on a slow, steady climb. This is more effective for the overall growth of the economy, as rapid house price increases will eventually lead to a crash. The current stable market makes buying a home today a solid, long term investment.
Inventory Shortages Create Buyer Bidding Wars
When the mortgage rates are low, this can cause a number of homeowners to sell their current property and upgrade. This can lead to a shortage of higher priced homes in your area, and most sellers are able to get their asking price. As more and more people decide that now is the time to buy a home, houses across the price spectrum can see an inventory shortage. For buyers, it's important to be ready to make an offer immediately to avoid losing out on a property you love. Bidding wars are becoming more scarce, but they still happen in areas of low inventory.
Selling a Home Fast
To sell your home quickly, you need to give it a fair price. While buyers may not be fighting over your home, you will still get offers when your price is comparable to similar properties in the area. If you are trying to sell your home fast, price it accordingly. This is when working with a Realtor becomes essential. A Realtor in your area will know the ins and out of the current market, and be able to price your home well in order for it to sell quickly.