The 2016 housing market is predicted to be a seller’s market. So what does that mean for buyers this year?
Well, if you’re looking to purchase a home this year, you can expect increased prices, low supply and fierce competition. So, above all it’s important to keep an open mind and move quickly when you find a good match.
Here are the top 3 key tips for buyers looking for a home this year.
Be the early bird
According to a realtor.com survey, over 85 percent of buyers who plan to purchase in the next year will do so in the spring or summer. With around 50 percent more listings relative to the number of potential home sales, beginning your search early will save you from more competition later.
Comparison shop for mortgages
Mortgage rates are forecasted to hit 4.65 percent and prices are projected to rise around 3 percent over year in 2016. If you plan to finance your home, make sure you put just as much effort into selecting the right mortgage as you do the right home. A lower interest rate can make a major difference in qualifying for a home and save you tons over the life of the loan.
Consider buying a newly constructed home
In 2016, new homes are supposed to saturate the market – resulting in around a 16 percent increase year over year. Consider the new home options in your market. They’ll probably have less competition and have a wider selection. Though new homes usually have a higher price tag, they’re usually bigger and offer performance advantage and warranties that will save money in the long run on maintenance and operating costs.