A Buyers’ Market on the Horizon
In the last several years, the real estate market shifted from favoring home buyers to sellers. Common reasons for this included a lack of home inventory, reduced new constructions, and an ever-present mortgage rate lock. The last of which highly discouraged homeowners from wanting to sell their properties.
However, this spring marks the winds of change as the real estate market starts to pivot to benefit home buyers nationwide.
The number one reason for this is due to the Federal Open Market Committee announcing that there won’t be any further interest rate hikes in 2019. This is a huge benefit to home buyers namely because they’ll be able to strategize their home buying journey more effectively.
In a typical home closing process, prospective home buyers could be faced with a 30- to 45-day closing period. Because of the extensive time, interest rates have a lengthy window for fluctuation. Sometimes, this is beneficial to the home buyer, but in many cases, it just as easily can lead to a higher monthly mortgage bill.
With the implied stability for interest rates, home buyers are no longer forced into crunch time when it comes to closing on their home and securing a loan that best suits their needs.
With a combination of more reliable interest rate figures and reduced home bidding, this spring is shaping up to be in favor of Team Home Buying yet again!
For help with buying or selling a home, please send an email to BJM@MichnaLaw.com.