The housing market is constantly changing. If you are ready to buy, it’s important to know where the market currently stands and how it might affect the price and availability of your future home.
Consider these 3 factors before entering the housing market.
1. Inventory
Depending on the season and time of year, the number of homes on the market will differ. While you may experience high or low inventory, a more robust selection is more of a buyer’s market. With higher supply than demand, there are more potential homes and opportunities to negotiate price.
Less home inventory is more of a seller’s market because the demand for housing is higher than what’s available. This allows sellers to drive up the price of their homes, creating a more competitive environment for those looking to buy.
2. Pricing
When purchasing a home, price is one of the most important factors to examine. Sellers often rely on the current state of the economy, along with the advice of a real estate agent to decide the worth of their property.
Factors like household income, job growth and the overall stability of the economy all play a role in the affordability of homes on the market. It should also be noted that government policies can affect pricing too. In Connecticut, property taxes must be assessed at least once every five years but can occur more often.
3. Mortgage Rates
Approximately 86 percent of homebuyers choose to finance their purchase, making a mortgage crucial in the home buying process. There are many factors that can affect mortgage loan rates. If demand for financial assistance is too high or inflation increases, rates will rise. Yet if there are fewer buyers applying for mortgages, rates tend to decrease.
When rates are very high, sellers may be more hesitant to list their home and search for a new one. If you choose an adjustable-rate mortgage (ARM), there is a possibility your rates will change over time, even after purchasing a home.
As of August 2021, mortgage rates are low! Don’t wait to find your future home. Browse our active communities today.