What Can First-time Buyers Expect in Today's Housing Market?
Purchasing your first home is a bit like running an obstacle course – there are all sorts of hurdles to overcome and plenty of opportunity for surprises along the way. The good news is that if you prepare well enough, you can make it through the challenges more easily. The Housing Council is here to help buyers with the preparation part, so we’re sharing four things that a homebuyer can expect from today’s housing market.
1. The Rochester area housing market (and most of the country, for that matter) is extremely tight right now. There are not many houses for sale, and you will need lots of patience. Be prepared that you may need to put in offers on multiple homes to get an offer accepted. Don’t get discouraged!
2. There is a lot of competition for the relatively small number of homes for sale. There’s a very good chance that you won’t be the only one putting in an offer and you may be competing with people who have more resources. Every sale is likely to have multiple offers. This means buyers are taking larger risks like overpaying and waiving inspections, which could be extremely dangerous to your financial and physical well-being. Working with a Housing Counselor will help you navigate the market without putting your family at unnecessary risk.
2. You can expect low interest rates. However, it is important to shop around for a mortgage product that best suits your interests. All indications are that mortgage rates will remain low for the rest of 2021 (according to the National Association of Realtors and others.) The rate you’re offered will depend on a few things, including your financial situation. And speaking of which…
3. Finances come first - this is where your “fitness” for the homebuying hurdles comes in! Today, as always, you’re best positioned if you’ve got your finances in order BEFORE you even think about looking at houses. That means fixing any credit issues, paying down debt, etc. Today’s market situation makes it even more vital that you’ve worked on overcoming a low credit score or any other financial issues. Plus, paying down debt balances will give you more purchasing power, giving you a leg up on the competition.
4. The homebuying process can still be confusing, even overwhelming. Pre-approvals, down payment assistance grants, mortgage shopping – so much to consider. Preparation is the key to finding an affordable home that is the right fit for your family. The good news is you don’t have to go it alone. The Housing Council has answers for first-time buyers, and can help you “get in shape” before you get started down your homeownership path.
For more great advice from our Housing Counseling experts on what you can expect as you consider owning your own home, check out our YouTube Channel for information-filled videos. You can also visit our website for more information on our First-time buyer program, our FAQ page or give us a call at 585-546-3700 and we’ll answer your questions.