The real estate environment is changing a lot in 2018.
Many individuals think back a few years ago to when the housing market collapsed and feel like the residual fallout from that is still occurring. After all, if you are one of the many individuals who lost your home or experienced other financial losses, the sting is probably still very much alive.
2018 Real Estate Game Changers
However, I’m here to tell you that there is, indeed, a light at the end of the tunnel. In fact, if you put that dream of owning a home on the backburner, this is the time to revisit it!
First of all, house prices are on the rise. Now, if you’re thinking of purchasing a home, this seems like bad news, as you wonder if you can afford your dream.
However, rising home prices are one sign of a strengthening economy. This is good, because a changing mortgage lending process and rising home prices typically go hand-in-hand.
Therefore, we see new home builders offering incentives, such as $0 down in some parts of the country. We also see mortgage lenders relaxing some of the criteria for mortgage approval, which means lower credit scores and down payments may be incentives that you can take advantage of.
Mortgage Rates
Mortgage rates increased in 2017 and, according to HBI (Home Buying Institute), the MBA (Mortgage Bankers Association) said they expect the benchmark 30-year rate to climb above the 5% threshold sometime around the middle of 2018.
So, look at the possibility of purchasing a home now, when rates are still relatively low.
Furthermore, FHA loans are becoming more popular as they tend to allow the buyer the lowest down payment possible.
The Bottom Line…Something to Think About
Yes, it is possible that rising house prices and mortgage rates may bump some individuals out of the possibility of purchasing a home. In fact, it is estimated that as many as 10 million Americans were forced into foreclosure when the housing bubble burst.
However, the effects of the Great Recession are easing up for as many as 1.5 million of those forced into foreclosure, as the waiting period for a foreclosure is seven years from the date reported on the credit report.
These 2018 real estate game changers are ones to consider.
Call me to discuss your wants and needs. Let’s determine if we can make your home-buying dream a reality.
I can also refer you to lenders that I personally work with to get a more detailed evaluation of your circumstances.
Contact me to schedule a meeting!
Dana Davis
Dana Davis Properties/DHR (Distinguished Homes Realty)
386-569-4998
P.S. If you already have a home, but are looking to sell, read my recent blog, “Getting Your Home Ready to Sell.”