Housing market information shared by Lender Jeremy Boillot with Barrett Financial Group.
Homes Scarce, Demand High: Why Now Is the Time to Buy
Has the strength in the housing market surprised you?
The strength boils down to supply and demand. Remember back in 2007 when we faced a housing bubble? Back then, we had 4 million homes up for grabs. Fast forward to now, just a little over 1 million available.
Meanwhile, our population has grown by a staggering 34 million people! That means millions more are competing for significantly fewer homes, which pushes home prices higher.
While it’s true rising interest rates dampen demand, there are 2 million new households being formed every year and they all need a place to call home. With builders supplying only about 1.4 million new homes, there’s a clear imbalance.
This imbalance is why home prices increased by 6% in 2022, defying the media headlines calling for a housing crash. And what about 2023? Reputable appreciation reports are forecasting 5 to 10% annual growth in home prices this year!
On a $500,000 home, that would mean a gain between $30,000 and $60,000 in home price appreciation alone! Don’t wait, reach out to me today to learn how to generate wealth through real estate.
Making Informed Bids in a Competitive Real Estate Market
Did you know that currently, one-third of all home purchases involve bids above the asking price?
This number is on the rise, as homes are being sold quickly, spending an average of just 18 days on the market. As a result, buyers looking to purchase a home face the dilemma of whether bidding above the asking price is a wise decision. The key to evaluating this is determining the breakeven point and considering future appreciation.
Thankfully, we have access to historical data and future forecasts for every market. Working together, we can provide you with a clear projection of the time it will take for the value of the home to reach your bid and also assess future appreciation. This approach ensures that your decision is based on solid data rather than emotions. The best part is we can accomplish this in just a matter of minutes.
Reach out to me today, and I will help you in securing the home of your dreams.
What’s next for mortgage rates and real estate?
Do you know what drives mortgage rates? It’s not the Fed…it’s inflation. And inflation has been improving, which has been helping mortgage rates improve. On May 10, we had an encouraging drop in the Consumer Price Index or CPI inflation report. But the good news is expected to continue!
Over the next two months, inflation is expected to improve further, which should help mortgage rates even more. Improving mortgage rates will increase buyer demand into a very tight inventory environment. It might be wise to get ahead of this positive news and act sooner than later on purchasing a home.
You don’t need 20% down to purchase a home
One of the biggest misconceptions for renters is the amount of down payment needed. Only 11% realize that a home could be purchased with just 5% down, and about 45% believe that a down payment of around 20% is needed. This is according to the latest survey from the National Association of Realtors.
Additionally, two-thirds of millennial renters say they don’t have enough saved for a down payment, but that’s because many felt they needed to save 20% of the purchase price according to Apartment List.
If you are renting, you are getting left behind. The average homeowner has a net worth 40 times higher than that of a renter. Many millennials are already seeing this. For the first time ever, 50% of millennials are now homeowners.
Rents will likely continue to rise! Don’t miss your chance to start building wealth through homeownership today. Reach out to me so I can share more about the benefits of owning a home.
| Jeremy Boillot Mortgage Loan Advisor | NMLS #1208591 Barrett Financial Group, LLC | Corp NMLS #181106 2701 E Insight Way #150, Chandler, AZ 85286 (480) 677-0644 phone |
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