Buying a home is a big step both financially and responsibility-wise. It’s always easy to stay on the fence and find reasons not to commit. However, as an expert in real estate and as a homeowner, I can tell you that the advantages of owning a home far outweigh the disadvantages. If you’re on the fence about buying a home and you need some convincing, keep reading. Many serious buyers are now taking the plunge and looking for homes. The market is improving for buyers, and now may be a better time than later. So let’s take a look at 5 reasons to start your Effingham County and Savannah home search right now.
1. More Inventory
For the past several months, inventory has been low, with buyer demand far outpacing the number of available for-sale homes. But that’s beginning to change and is a good reason to start your Effingham County and Savannah home search right now.
Actually, though, increasing inventory isn’t due so much to more homes coming on the market, but rather “because higher mortgage rates and home prices have helped moderate the peak frenzy of buyer demand.” But the result is the same: there are more for-sale homes compared to demand.” And that’s good news for you and a reason to begin your Effingham County and Savannah home search.
“Regardless of the source,” experts say, “the increase in available housing supply is good for buyers. More housing supply actively for sale means you have more options as your search for your next home. . . Nationally, the inventory of homes actively for sale on a typical day in July increased by 30.7% over the past year, the largest increase in inventory in the data history and higher than last month’s growth rate of 18.7%, which was itself record breaking. This amounted to 176,000 more homes actively for sale on a typical day in July compared to the previous year and more choice for buyers who are still looking for a new home.”
If you’ve delayed your Effingham County and Savannah home search because there just weren’t enough homes to choose from, that time may now be over. You should find it much “less difficult to find a home than it would have been over the past two years.”
You can contact a Effingham County and Savannah agent to find out exactly what the inventory looks like in your market. Just call (912) 695-6932 to discover more.
2. Mortgage Rates Going Up
Not long ago, mortgage interest rates hit historic lows, but that is now rapidly changing. And though it may not seem like it, this is another reason to start your Effingham County and Savannah home search right now.
Here’s what’s going on with mortgage rates. “At the start of the year, the average interest rate on a 30-year fixed-rate mortgage was about 3.3%. In June, it was closer to 6%. That’s a huge jump in a short period of time, and it means it’s harder for folks to qualify for a loan and higher payments for those who do. When rates were at record lows, people often could afford more expensive homes because the low rates offset the increase in asking price . . . However, as rates continue to rise, because a higher rate means your monthly payment is going to be more expensive, you’re going to find yourself with much less wiggle room.”
How is that a reason to start your home search now? Consider these three things . . .
- Mortgage rates are expected to keep going up for the foreseeable future. And that makes right now a good time to buy before they get even higher.
- You can also “refinance a loan in the future to get a better interest rate if those rates come down, which might happen.”
- And “if you look back more than a few years, a 6% mortgage rate isn’t all that bad. Rates of 7% were seen as pretty good back in the 2000s.”
3. A Changing Home-Buying Experience
In addition, the changing home-buying experience (as compared to the previous year or so) may be a reason to start your Effingham County and Savannah home search.
First, there’s the increasing inventory we mentioned above. “High prices and mortgage rates are pushing a lot of buyers out of the market, which can present opportunities for those who are staying in. Depending on the market – even the neighborhood – buyers might even have time to take it a little easier now, compared to the chaotic rush of the past two years.”
But perhaps more important, buyers are gaining a little more leverage and so are able to make competitive offers that don’t hand everything over to sellers. According to industry insiders, “[i]t also means some of the buyer behaviors we’ve seen lately might fade just a bit. Things like waiving an inspection or appraisal might not be as necessary if buyers are competing with fewer bids.”
4. Prices Rising and Homes Selling Quickly
Although the rate of increase in home prices has slowed a bit, prices are still rising. “The current upward trend of home prices will likely continue to increase throughout the year, which could end up pricing out some home buyers.” And that means, of course, you may want to begin your Effingham County and Savannah home search before prices get even higher.
Also, despite the fact that inventory is increasing, the real estate market remains a seller’s market – and homes are selling quickly. So if you begin your home search now, you can snap up that dream home before other buyers do.
5. New Credit-Score System
And then there’s the new credit scoring system that may immediately add 22 points to your score – an additional reason to start a Effingham County and Savannah home search. A better credit score can get you a lower mortgage rate and better terms.
“Another reason [now] is a good time to buy a home is that, on July 1, 2022, U.S. credit bureaus stopped including medical debt and collections in their respective credit scoring formulas.” Here ate the important points:
- “Satisfied medical collections are removed from all credit reports.”
- “Unpaid medical collections are not recognized until the debt is one year old.”
- “Outstanding medical collections of less than $500 are ignored in 2023 and beyond.”
What You Still Need for Your Home Search
So things are starting to lean a little more in favor of buyers. Still, it remains a seller’s market that requires local market knowledge and experience to get a good deal on the right home. Now is a good time to buy if you have an experienced Effingham County and Savannah agent to assist you.
Every year, I help many home buyers in Savannah and the surrounding area purchase their dream homes. Regardless if you are a first-time buyer or a seasoned investor, I, Lisa Ortiz, REALTOR® can help you with all of your real estate needs. Contact me today at (912) 695-6932 and let me go to work for you!
