It’s winter, but the real estate market is not slowing down! Today, I’ll go over your latest market update.
I’m here with your latest real estate market update!
As the weather gets colder and the holidays approach, most home sellers think, “It’s December and the market is going to slow down. I’m not even going to think about putting my home on the market.” However, that’s not a good idea.
Why? Right now, the market is actually swarming with buyers. In fact, there are so many buyers that I just sold two homes that weren’t scheduled to hit the market until April! Inventory is incredibly low, so even if you’re not planning on selling til next year, pick up the phone right now to figure out what your next steps are. Now is still a great time to be on the market, as interest rates are still low and buyers are highly motivated.
Now, first-time buyers probably think that they need to put 20% down in order to buy a home. However, the average down payment for first-time home buyers has dropped down to 6% in 2016, while repeat buyers are putting 14% down. In fact, some first-time buyers are able to get in a home for less than 4% down. You don’t need to get an FHA loan; there are other loan products out there that allow you to put 3% down.
Right now, mortgage interest rates are at 3.5%, which is still incredibly low. Over the next 12 months, they’re expected to jump to 4.2%, which is quite a difference. Mortgage credit availability is also very good right now, so it’s easier for more people to get a mortgage.
As for what FICO score you need to buy a home, in 2016, 53% of closed loans had FICO scores between 600 and 748. In fact, 30% got a loan with a credit score under 700. This combined with low mortgage rates and increased mortgage credit availability makes now a great time to be a first-time buyer.
As for our sellers, you should know that inventory is extremely low right now. By putting your home on the market, you will be able to maximize the profits from your home sale.
That’s it for our winter market update. Keep an eye out for our next Home Selling Shark Seminar on Saturday, January 21st, 2017. We will also have a buyer conference next January. Check out HomeSellingSharks.com for more details.
In the meantime, reach out to me with any real estate questions you might have. I would be happy to help you!