2014 is going to see an increased number of people becoming a homeowner for the first time. Are you on the list? Good enough, but you need to be aware of one thing; as of right now, the market has many buyers, but are there enough homes? Actually, the inventory levels are still very low. Come spring time, this may not be so, but act fast is what we have to advise.
According to stats, there were over 2.1 million first time home buyers in 2013. What about the figures this year? There are 10% of renters who can afford to buy a home. If all of them succeed, this would account to 4.2 million home buyers, and it will be the first time for all of them. As far as affordability is concerned, these people have no doubts about purchasing but market conditions are one thing they cannot control.
A new factor has been determined in the survey report, which is the housing confidence index. This value can be between 10 and 100. For 2014, the observed value is 63.8, which is quite high.
The survey has also pointed out that all the people who are interested in buying a home are not looking for luxurious properties. Most of them just want simple homes which they can easily afford.
So while buying a home, which obstacles will buyers likely face? As we stated previously, inventory levels are not high and supply is limited. In the upcoming months, supply will probably increase, but will it be enough to meet the demand? We will have to wait and see this.
What about mortgages? Will that cause problems? The industry experts do not think so. A reputed lender stated that mortgages rates are not going to be much of an issue. Even though the rates may have increased when compared to last year, they are still historically low and will favor buyers. The current mortgage rate is around 4.2%, and last year, the values were around 3.3%.
So if you really want to buy a home this year, you should start right now. Make sure you have a good credit score, hire an agent, get mortgage pre-approval and then start browsing the MLS. Good luck on your homeowner journey.