Over the last 10 years, the housing market has changed considerably, and most recently, the world recession has also taken its toll. Throughout this period, there have been changes in the housing market, especially when it comes to mortgages, and if you’re considering buying a home in 2013, you should know that the market is currently beneficial for sellers, and a tough nut to crack for buyers. Here are a few tips for first time buyers in 2013!
Home Prices Are Rising – Everywhere!
According to a recent report published by a major high street mortgage lender, 88 per cent of cities in the USA saw a significant rise in the cost of single family homes in 2012. Typically, this figure is averaged out over the whole country, however it still remains a clear indication that there are a lot more people looking to buy then there are selling. Thus, rising house prices reflect the market condition.
Always make sure you research the area you’re buying in, as well as the market values of the surrounding homes if you’re looking to get on the property ladder in 2013. There are many factors that can influence the market value of a property, including transport links, schools, proximity to the city, and the amount of interest being shown in the area.
Buyer’s Markets Used To Be Common – But Not Anymore
Across most of the United States of America, many people were convinced that a buyer’s market was the main reason for house prices levelling out, especially over the last ten years. The media has covered a number of specific cities where thousands of homeowners were looking to sell, meaning the general public were made to believe that they were living in a buyer’s market. After the initial recession and the housing collapse, this was indeed the case, however not any more.
Presently, it’s completely the opposite, and the market that used to favour the buyer has now switched sides to the seller. This new market allows house prices to remain high while inventory remains low, and as there are more buyers out there than there are houses on the market, there’s a lot of money to be made if you’re considering moving home.
A mortgage for first time buyers can be tedious, so make sure you understand the market you’re operating in – don’t just look to your estate agent to spoon feed you information. Always research the estate agent you’re going to be working with, and don’t be afraid to haggle on the commission price – remember, it’s a sellers’ market!
Because so many more people are looking to buy a house compared to selling one, lenders have been introducing a lot more documentation related to the property, and the mortgage application.
Before the recession and the housing crash, lenders would specifically limit the amount of paperwork it took to apply for a mortgage, but now so many more people are applying for financing, they have to filter out the most likely applicants from the pool. Although buying a house can be an exciting experience, it can also be daunting, so always seek out an advisor if you have any questions that need answering.