Will you be shopping for a new home in 2017? Below is some insight into the real estate market and what home buyers can expect as they begin their hunt for either a new home or their first home.
The real estate market has been affected due to the election that recently occurred. Interest rates on home loans and refinancing have risen point fifty percent over the past two months. Even with this increase the housing market on a whole remains strong. It is important to consider that the market could see a rise in real estate markets under this new leadership. The prospect of higher interest rates and increased real estate costs may create a sense of urgency amongst buyers going into the spring season.
The traditional timing of first time buyers is changing. People are no longer waiting until they are married to look into homeownership. More single people are choosing to purchase homes than ever before. The 2017 real estate market will see more and more home buyers that are single verse real estate trends of the past in which typically home buyers were married couples.
Those seeking investment properties most often have the same goal, price appreciation. If the goal for 2017 is to acquire additional properties as investments look where home values are set to increase the most. For almost all areas larger price increases can be seen on property within larger metropolitan areas. Not only property values increase either. The amount of rent that can be charged is significantly higher than the rural area surrounding the metropolis.
It is critical that first time home buyers concern themselves with more than just the initial down payment. The costs of obtaining a mortgage are additional to the actual down payment on a home. A home costing $150,000 could require a twenty percent down payment and two percent closing costs. Thus the amount due at closing would be $30,000 for the down payment and upwards of $3000 for the closing fees.
It is also important for first time home buyers to have a nest egg of funds put aside for unexpected emergencies that can arise with homeownership. Inspections are not a hundred percent failure proof. Sometimes there are things that aren’t noticed until you are living in the home. Maybe the water backs up when you are running the dishwasher and washing machine. This may not be something caught during the inspection process. The nature of the issue is not something that is common for home inspectors to look into during the home inspection process. These small issues can add to the financial pinch of a new mortgage and should be planned for ahead of time. The last thing new homeowners want to do is to put debt on to credit cards. A cash emergency fund is the best way to handle the unforeseen.