Top Tips for Homebuyers in 2016
This year is expected to be a good year for the real estate market, but homebuyers will be faced with increasing home prices, higher interest rates, and fewer homes for sale. In a sellers’ market, buyers need to be ready to act, according to Jonathan Smoke, chief economist for realtor.com®.
“Buyers looking to close this year need to keep an open mind and be prepared to move quickly when they find a home that meets their needs,” Smoke says.
If you are in the market for a home in 2016, test your real estate savvy by taking Realtor.com®’s 2016 Housing Quiz. It also features an interactive infographic that shows the best growth markets for 2016, which includes the Atlanta metro area. We also recommend that you keep these top tips from realtor.com® in mind as you search:
• Be the early bird. Over 85 percent of buyers who plan to purchase in the next year intend to buy in the spring or summer of 2016, according to the most recent realtor.com® survey. Buyers who start their search early face less competition with nearly the same number of homes.
• Comparison shop for mortgages. Mortgage rates are expected to reach 4.65 percent and prices are predicted to rise 3 percent year over year in 2016. Buyers planning to finance their purchase should put as much effort into getting the right mortgage as they do finding the right home. A lower interest rate can make the difference in qualifying for a home and save thousands over the life of the loan.
• Consider a new home. In 2016, the number of new homes on the market is expected to grow more rapidly resulting in a 16 percent increase in new home sales year over year. Buyers should consider the new home options in their market; they are likely to have less competition and to enjoy a broad selection of homes. While new homes are typically higher in price, they are usually larger and offer performance advantages and warranties that could reduce operating and maintenance costs.
• Buy a home in the Midwest or South. The biggest issue expected to hold buyers back this year is an inability to find a home in their price range. Considering a home purchase in the Midwest or South may be a good option for those who really want to close in 2016.
If you are considering a home purchase in 2016, why not get started today? Contact one of our Duffey Realty REALTORs® to review homes for sale. We are here to help!