Robert Clayton Southlake | What You Can Expect From the Real Estate Market This Spring
The spring 2018 estate market is a good or bad news story. A report by Arch Mortgage Insurance says that affordability declining, inventory deteriorating while interest rates and housing costs rise. They also predict that this is one of the worst years in which housing affordability decline 5% says Robert Clayton Southlake.
According to this report, the size of the monthly mortgage recompense required to purchase a home increases nearly 5% over the previous three months. The picture gets bleaker at year end with affordability possibly decreasing an additional 10%-15%.
In most urban areas buyers are pushing costs up with numerous offers as well as bidding wars. This directly influences the affordability factor. As a result, not only Millennials have few housing options, however, baby boomers looking to economize also have limited choices. Furthermore, in some markets baby boomers are competing with millennial for the same property.
Mortgage Rates are higher
According to a real estate agent, a few years ago the fixed-rate mortgage was 3.78 percent. In the most recent analysis, it hit 4.45 percent. It rises because worldwide bond markets, which eventually determine the rates on longer-term loans, arbitrated that larger budget shortfalls and a faster-growing economy would result in greater inflation and more interest rate upsurges from the Federal Reserve.
For individuals deciding to pay $2,000 a month for a house mortgage and not a penny more, the math works out that they can borrow $397,000 nowadays, down from $430,000 in September. The math for affordability is little complicated than that you also need to consider the possible tax deductibility of mortgage interest. Plus how much money a purchaser has available for a down payment.
According to Robert Clayton Southlake, the thinking around a rise in rates is not necessarily straightforward. In a survey of the online brokerage involving 4,000 individuals who purchased or sold a home last year or tried to do so, 25 percent of respondents said that mortgage rate increase to 5 percent would have “no effect” on their home-purchasing plans.
Spring 2018 is the Good or Bad news story for estate marketers
2018 will be the first year people will see limited inventory, increasing the home price, and a rise in the interest rate. This will directly affect the long-term prices for the purchaser. Inventory remains at historic lows. And purchaser demand is fallen over from last year as many consumers have been unable to buy a home.
It is a good news as well as a bad news story for the estate investors. As there is not sufficient inventory for purchasers and sellers are getting the better close of the game says Robert Clayton. The better news is with home costs continue to increase it remains a robust economy.
According to industry experts, home buyers must have a clear strategy which includes:
• What and where they want to purchase
• How they will finance it
• What are their needs?
Having clear ides of above things help you focus on placing reasonable offers when they find a property they want.
Wrapping Up
Robert Clayton Southlake real estate agent has given his overview of the rising prices of home this year. Actually, as long as individuals look for a place to live, the prices and sales will be upward. With the rising housing prices, affordability continues to decline. And this affordability factor not only impacting Millennials but also other sellers with their different housing affordability concerns.
