If you haven’t bought a home in several years and you’re thinking the time is right to buy—but haven’t paid attention to the housing market—you should know that current housing conditions are a bit different today than they were a few years ago.
Here are some areas to consider before jumping into today’s market:
Home Prices. In many areas, home prices have risen and should continue to rise at a measured pace. Although they’re not at the peak levels we saw in 2006 or 2007, prices on a national level have come back from their lows in 2009-2010 and are worth keeping an eye on if you’re looking to buy.
Interest Rates. The interest rates are no longer breaking records, but they’re still low in a historical context. Currently, the rates on a 30-year-fixed rate mortgage are right in the 4.1-4.2 percent range, but those numbers could change as quickly (as they did last summer), so don’t wait too long to buy.
Time on the Market. Although housing inventory is very local in nature, the average time that a home is on the market has decreased nationwide over the past five years. If you’re a prospective buyer, this means that you should be prepared to act quickly once you’ve found the home you want to buy.
Competition for Homes. With a low average time on the market, you may have more competition from other prospective buyers. The current market conditions are nothing like the frenzied buying conditions in the mid-2000’s, but multiple-bid situations are becoming common once again.
Foreclosures/REOs. The number of foreclosures and bank-owned properties has decreased over the last two years, but good deals can still be found. Buying a foreclosure is more complex than buying a “regular” property, so talk to your real estate agent if you’re considering such a purchase.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988. Licensed by the Commissioner of Banks - License No. MB2671