In the past 12 months, home prices have roughly risen by 12%. This upward direction is a trend which goes as far back as the past 24 months, and is expected to continue in the upcoming months. Only this time, the rise will be around 10% and not the previously recorded value of 12%. Once a few months have passed, the rise will still be noticeable but will be reduced to a one-digit figure unlike the double digit that is being recorded currently. As far as this year alone is concerned, the rates have risen by around 0.8% every month.
The above stats have been recorded at the national level. Coming down onto a regional level, the largest growth in prices is around 19.8%. And if you consider the top metropolitan states, then 96% of them have experienced an increase in home prices.
The figures are quite good, but they are still lower than the figures recorded in the post recession period. This decrease is still around 16%.
An expert in the real estate industry stated that prices will still remain strong because the inventory levels are still not high. However, the rises will be quite moderate in the next few months. People will have more equity in their homes, and will have a better position in the market. He added that mortgage rates were also low right now around 4.25%.
So if the price gains are going to rise at a steady pace, does that mean that houses are going to remain affordable? This should be a yes in most cases, but if your scores are low, and your finances are already troubling, you may not find homeownership affordable. Our advice is that before you get involved in buying a home, you should go through your credit report and analyze your financial situation. Only then, take a step forward.
Hire a reputed real estate agent, and discuss the situation with them. If you are eligible, VA and FHA loans may be a great choice for you because the interest rates on these loans are towards the lower end.
In the end, we have another important tip for you. Whichever loan amount you are given approval for, borrow only 80% of it to be on the safe side.
If you are really serious about becoming a homeowner, now is a great time to step into the real estate market if your finances and scores permit you.