Price Cuts Coming?
The future of the housing market could be in question.
With mortgage rates increasing just over a full point in the past year, many prospective home buyers are either staying away because they are scared about how high it can go, or they are not getting approved because of strict lender qualifications about debt to income. Once you combine that with a buyers concern over their job stability, and a lack of homes that fit their budget, you may see a price drop across the landscape coming soon. For now, it looks as though prices have held steady, it’s just that homes are sitting on the market quite a bit longer. But eventually if they are going to move, prices will have to come down.
One major effect that may be a positive sign for buyers is that due to the concern over increased mortgage rates, investors who have been more and more competitive with families to purchase single family homes may be staying away. Many who buy and flip, even if all in cash, look to refinance their purchases shortly after closing in order to pull cash out to make more purchases. So buyers may have their offers taken more seriously if sellers aren’t as confident that an investor will come along and save the day.
If you are in the home buying market or are waiting for the aforementioned price drop, there’s an ever increasing amount of resources to help you find the most competitive deal, either from finding the right home or the right lender. And if you are an investor, with the squeeze on profits and mortgage rates, often times a more financially create strategy is required to make your deals make sense. Either way, many buyers are considering attorney closings in order to seal the deal. Where’s Legal?, P.C. can help with that, either through your real estate agent, or directly representing buyers in their single or double closings. We have escrow and title companies ready to help us work with you and your lender to secure your home purchase closing, so contact us if you are in the market.