Helping you buy and sell real estate in Boulder County and beyond
If you put off your home search at any point over the past two
years, you may want to consider picking it back up based on today’s
housing market conditions. Recent data shows the supply of homes for sale is increasing, giving buyers like you additional options.
But it’s important to keep in mind that while inventory is improving, it’s still a sellers’ market.
And that means you need to be prepared as you set out on your home
search. Here are three tips for buying the home of your dreams today.
1. Understand How Mortgage Rates Impact Your Homebuying Power
Mortgage rates have increased
significantly this year, and over the past few weeks, they’ve been
fluctuating quite a bit. It’s important to stay up to date on what’s
happening with rates and understand how they can impact your purchasing
power when you’re thinking of buying a home. The chart below can help.
Let’s say your budget allows for a monthly mortgage payment in the
$2,100-$2,200 range. The green in the chart indicates a payment within
or below that range, while the red is a payment that exceeds it.
As the chart shows, even a small change in mortgage rates can have a
big impact on your monthly payments. If rates rise, you could exceed
your budget unless you pursue a lower home loan amount. If rates fall,
your purchasing power may increase, which could give you additional
options for your search.
2. Be Open to Exploring Different Options During Your Search
The supply of homes
for sale is improving, which gives you more homes to choose from. But
historically, supply is still low. That means as you search for homes,
if you still don’t find something that meets your needs, it may be worth
expanding your search.
A recent article from the Washington Post
highlights a few things buyers can consider today. It encourages
opening yourself up to more areas. For example, if there’s a location
you’ve previously ruled out (like a particular town, for example) it may
be worth taking another look.
And if you’re able to, opening your search up to include other
housing types, like newly built homes, condominiums, or townhomes can
further increase your pool of options. Even as the inventory of homes for sale improves today, finding ways to cast a wider net during your search could help you find a hidden gem.
3. Work with a Local Real Estate Professional for Expert Guidance
Ultimately, you need to be prepared when you set out to buy a home. Jeff Ostrowski, Senior Mortgage Reporter for Bankrate, explains:
“Taking the leap to homeownership can provide a feeling of pride while boosting your long-term financial outlook, if you go in well-prepared and with your eyes open.”
No matter where you’re at in your homeownership journey, the best way to make sure you’re set up for success is to work with a real estate professional.
If you’re just starting your search, a real estate professional can
help you understand your local market and search for available homes.
And when it’s time to make an offer, they’ll be an expert advisor and
negotiator to help yours stand out above the rest.
Strategically planning your home search by understanding today’s
mortgage rates, casting a wide net, and building a team of experts can
be the keys to finding the home of your dreams. To make sure you have
expert advice each step of the way, let’s connect.