The First Time Homebuyers Window is Opening
The last 18 months or so have been brutal for you first time homebuyers and buyers with lower homebuying budgets. Just when you thought you found the perfect house and your search was over, your offer was drowned out by 15 other offers, way over asking price or cash offers by investors. Out of sheer exhaustion and frustration, you decided to hold off, to keep renting and to sit this one out. Well, the good news is that it might be your turn to stand up and try again!
The market is ever shifting and sellers are making downward adjustments on their pricing, which has been unheard of in recent months. As a result, now may be the time for homebuyers in lower price points to jump back into the market. While sellers are pricing lower, the cost of rent is still increasing which means that it is to the advantage of many price-conscious buyers to dip their toes into the real estate market once again.
Another sign that the market is adjusting and the pendulum is swinging towards the buyers’ favor is that rates, although higher than they were a year ago, are stabilizing. It is important to note that the interest rates, compared to last year, may still seem off-putting to many buyers but we have to keep in mind that many economists do not see overall sales prices decreasing that drastically in the Charlotte market. The Charlotte market is still poised to stay very strong and relatively stable, in comparison to other markets around the country. Buyers should take to heart the old adage, “marry the house but date the rate”, meaning you can always refinance at a later time, should rates drop again and many homebuyers do throughout the course of their mortgage.
Another option for buyers to take advantage of is asking for some seller paid closing costs in their offer to purchase. While seller paid closing costs may have been unheard of just a few months ago, with the market contracting, sellers are going to be more open to negotiate terms that are favorable to buyers. Seller paid closing costs could be put towards the overall cost of the loan, or buyers can work with their lenders to use some of those dollars to buy down their rate, making the monthly payments more attractive.
More homes on the market allow for more options for buyers. More time on the market means buyers have more time to consider which home really fits their needs the best. Mortgages typically are still far more affordable than the ever-increasing rental rates. Not to mention when paying rent, you are paying 100% interest every month, never growing equity or wealth. This is the big break that many buyers have been waiting for, for years and now would be a great time to take advantage of the shift!
If you’re ready to jump back in (or jump in for the first time) and you’re not working with a Realtor, we’re always happy to help.
(704) 798-9660 // [email protected]