The housing market across the county has had quite the boom. 2017 has been a great year with limited inventory, houses being on the market for a short amount of time, but is market finally slowing down? What does this mean for you and what should you do? The housing market has surpassed the expectations in the first half of the year, and they don’t expect a slow down any time soon.
Lack of Inventory
The market has recovered from the crash 10 years ago, and that is great news! Well, sort of if you want to buy a house there is huge competition, the houses aren’t staying on the market long enough, and there isn’t enough inventory causing bidding wars, higher prices for the home, and causing a lot of buyers to wait longer to find their future home. As more buyers enter the market, the competition will increase so be prepared.
Newer Homes Will be Priced Higher/Housing Price Increase
Buying a new home, with new construction sounds great. Is the higher cost of the home worth it? In many cases it is. You can get the house that you want, and have the house customized to your liking if you are doing a new build. The combination of higher wages, and the cost of land has driven up the cost of a new build, causing many renters who would like to buy a new build unable to do so. In recent economic reports, it shows that not only in Memphis, but all of Tennessee the housing prices are rising, and they are increasing faster than any other state in the country.
For 2017 the interest rates have gone up and will continue to climb. While the interest rates have been historically low, know they are going up, so don’t be surprised. Having a good credit score is always important when applying for a loan, the better your credit score the better rate you will get. If you have a high interest rate the higher your mortgage will be, or you may not be approved for what you want or need if you have less than good credit.
Who is Buying?
Millennials are still dominating the market with either buying their first home, or upgrading to something larger. Baby boomers are also a great force for the housing market. Many are selling their larger homes, to downsize, live in areas that are more walk-able, and conveniently get to places in a shorter amount of time.
If you have more questions on these predictions give M.H Akers Custom Homes a call today.