Things are starting to warm up around here, finally. It seems we've been in an endless winter and I was wondering if we were just going to skip spring and go right into summer, but with spring comes the influx of homebuyers and sellers. If You're Planning to Buy a Home This Spring Here Are Some Important Things to Know.
The price of starter homes is going up the most.
If you're looking for a starter home or your first-time buyer, high demand and plenty of competition are raising starter home prices at nearly 10% more this spring than last year. Trade up homes are also more expensive to the tune of 5% to 7% more than last year. If you're looking for a starter home, concealed or older or smaller options as many of the newer homes have a starting price well over most first-time homebuyers budgets.
Affordability is on the rise.
Rising prices also mean that affordability is going up, which kind of balances things out. According to historical housing costs, home prices today are actually more affordable than they were in past decades, especially considering interest rates. With interest rates still historically low, the same home today is much more affordable than it was 20 years ago.
Homeownership is dropping in some neighborhoods and rising in others because many homebuyers are preferring neighborhoods full of homeowners instead of renters. Check out household incomes, crime rates, and school statistics for particular neighborhoods in order to get a better idea of the type of neighborhood you want to live in.
Don't to delay.
It's important to arrange your financing and act fast in order to get a great deal on a home but, that doesn't mean making a knee-jerk reaction. Start by knowing the type of home you want, the neighborhood in which you want to live, and preparing your financing and being pre-approved ahead of time so that when the right home hits the market, you'll be ready to.
Consider putting down a substantial amount of earnest money.
The more earnest money you offer the more serious you seem to the seller. Consider submitting a 1 to 3% of the purchase price as an earnest money deposit, which could take some time to save up for.
Be prepared for bidding wars.
In many hot markets across the country, bidding wars where buyers are offering over asking price and in some cases escalation clauses is very common. Talk to your real estate agent about the best way to go about this. Related: Can you still buy to flip in this market?
For more information or to be a prepared buyer this spring contact our office today. We specialize in Columbia Ohio real estate markets and surrounding neighborhoods.