Despite costs, buyers' market could be around the corner
Posted on Thursday, February 20, 2014 at 9:28:10 AM
The traditional monthly costs of residential financing and homeownership have been a significant investment over the years, although the overall expenses are often less than those related to renting. However, home affordability has recently taken a hit, although some experts point to a potential buyers' market this spring.
According to RealtyTrac, the estimated monthly house payment for a median three-bedroom home ticked up an average of 21 percent in the fourth quarter of 2013 compared to the same time in 2012. This includes residential financing, insurance, taxes and maintenance. Most likely, this is attributed to higher home prices and interest rates, even though the total costs are still below that of renting.
However, Zillow reported that there is a larger inventory of homes for sale across the U.S. This has helped reign in the rising values and appreciation. In 22 of the 35 metro areas covered by the organization, inventory increased year-over-year in January. This could lead to a less competitive housing market over the next few months, when buyers have more options and fewer competing bids. If this is the case, that would be another step toward a more balanced segment.