Buying a home can be a daunting process, especially in today’s real estate market. If you are considering buying a home in July, there are a few key points to be aware of.
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1. Mortgage rates are still at historic lows.
We started 2021 with a 30-year mortgage, which averaged less than 3%. You won’t find a 3% fixed loan these days if you can’t get a 20 or 15 year mortgage.
But make no mistake – today’s rates are still pretty competitive. At the time of this writing, the average 30-year mortgage rate was just 3.148%. For every $ 100,000 you borrowed, you will only pay $ 429 in principal and interest on the loan. Now, this amount does not include additional home expenses like property taxes and insurance, so you need to factor these into your budget as well. But in terms of interest rates, there is savings.
2. The value of the home has skyrocketed.
In May, the median home price was $ 380,000 nationally, according to Realtor.com. This is 15.2% more than last year. Meanwhile, in the larger metros, the average price increase was 7.4% compared to May 2020.
Of course, this $ 380,000 figure represents listing Prices. But today, many buyers find that they need to pay more than the asking price for a home in order for an offer to be accepted. This is because so many homes in today’s market are running out bidding warwhen two or more buyers are ahead of each other in price, trying to convince the seller to work with them.
3. The housing stock is still small.
According to Realtor.com, the number of active real estate listings in May dropped by almost 51% from the previous year. Meanwhile, the total stock of unsold homes, including unfinished sales, fell by almost 21%. Newly listed homes fell 25.2% from the typical listing volume seen in the housing market between 2017 and 2019.
Limited inventory not only makes it harder to find a home that suits your taste and budget. It also means you’ll have to fight other buyers for affordable homes – hence the bidding wars mentioned earlier. Unfortunately, this can make buying a home more stressful. as well as expensive.
It should also be noted that the real estate market has not seen the usual spring housing boom this year. Some sellers may be holding back from listing their homes until they feel more confident about the state of the economy and the pandemic. Thus, more houses may appear on the market in July, but we cannot say for sure if this will happen.
Should you buy a house in July?
Today’s mortgage rates make this a good time to buy a home, but inflated home prices can wipe out those savings. Be sure to set a home purchase budget before you start your property search because the last thing you want to do is go too high. mortgage and regret it after the fact.