Homebuying demand dips, opportunities remain for affordable residential financing
Posted on Thursday, October 31, 2013 at 10:26:36 AM
Demand for residential properties is on the way down, according to a recent report from Redfin. The housing market appears to be shifting away from sellers, and buyers may now have the upper hand.
This trend is different than the same time in 2012, when momentum was on the upswing. For buyers interested in residential financing, this means they could have an easier time securing a great deal on their dream homes. Less buyers mean sellers don't have as many options, without as much room to negotiate as before.
However, fluctuating residential financing rates could be one reason why there are fewer people looking for real estate. Home Loan Investment Bank's Patrick Deady recently offered some advice for potential buyers on how to save money and find the best deals.
"Higher mortgage rates do have an effect on homebuyer demand," said Deady. "Higher interest rates increase monthly payments, which can result in prospective homebuyers delaying or cancelling their plans to buy."
While this may worry some, there are plenty of methods one can take in order to use affordable residential financing to break into the market sooner rather than later.
"There are some steps that homebuyers can take to make homeownership more affordable," explained Deady. "One example is to consider purchasing a multi-family where the rents received can help offset the other expenses of homeownership. Another example is to seek out special first-time homebuyer programs in your area where there may be discounted rates or even grants for first-time homebuyers. Your local mortgage professional is a great resource for such programs."
Peak buying season typically falls in the summer. That doesn't mean, however, that autumn and winter are bad times to buy. With a solid strategy, any homebuyer can find the perfect property, no matter what time of year.
"First-time buyers should always align themselves with a good Realtor and mortgage professional to maximize affordability," said Deady. "Such professionals can help a homebuyer navigate the expenses that a first-time buyer might not anticipate. Patience and flexibility are keys when searching for a good deal in real estate. When supply increases - which is happening in many markets - buyers are in a better position to request concessions or price reductions from sellers."
Therefore, less buyers in the winter could equal more residential financing opportunities.
"We tend to see a trend of increased supply in the off-seasons of fall and winter," added Deady. "Overall decreased demand translates into a good opportunity for buyers who look to be in the driver's seat of transactions. Decreased demand allows buyers to be more aggressive with their offers and expect sellers to negotiate lower, which will result in reduced purchase prices and better deals for all."
Even as demand for properties declines this season, anyone can still look for that dream purchase. With a great strategy and help from the experienced professionals at Home Loan Investment Bank, buying at any time during the year is a smart idea.