Friends and clients,
Buying a home in a seller’s market is always a tricky situation. With low inventory and high demand, homeowners have the upper hand.
However, there are some specific things to know about the 2021 market that will help you win as a homebuyer, even in a challenging environment like this.
For starters, interest rates remain at all-time lows. The average rate for a 30-year fixed mortgage dropped even further to 2.79% during the week of January 14.
All of the major industry players predict that mortgage rates will stay in the low 3% range throughout 2021. Freddie Mac projects a 3% average across the entire year.
However, because interest rates are so low, home prices will probably continue to rise, albeit at a slower pace. The Mortgage Bankers Association projects a modest 2.4% jump in home prices, while Freddie Mac projects an increase of 2.6%
With so much going on, it’s more important than ever that you’re properly prepared as a homebuyer. This means having all of your financial ducks in a row, getting pre-approved, and being ready to make a quick offer when the right home hits the market.
If you find yourself in a bidding war, here’s some advice: Don’t just focus on the price. The terms of your offer are just as important.
When you do things like waive contingencies or add an escalation clause, it shows the seller you’re extremely serious without having to increase your offer price.
A bonus tip: Consider writing a personalized cover letter to the seller. If price and terms are all equal, it may be the thing you need to stand out from the rest of the competition and get the home of your dreams.
If buying a home is in your plans this spring, it’s time to start the process. You can get a jump on the spring market by taking a look at the homes that are available in your area right now:
As always, if you’re thinking about buying or have any questions, give me a call at (574) 529-5228. I’m here to help.
Have a great day,
Natasha Hernandez