Are you ready to start looking for a house to purchase? In recent years, the inventory rates for property buyers were sorely lacking. Many buyers would find themselves in bidding wars or staying longer in rental units because of the shortage of houses that were appealing or appropriate for family needs. The current market is changing. Do you want to get the most recent data before you sign a contract for a mortgage? We talk about the newest information in the U.S. real estate market in this post.
High home prices are the main deterrent for home buyers
Realtor.com tells readers that 75 percent of buyers must go out of the comfort zone to afford a new home. The median price for a house in the U.S. is now $277,000. Many lenders are asking buyers to accept payment terms reaching one-third of earnings. This high rate of a mortgage is causing borrowers to feel uneasy. The good thing is the same reports are showing loan affordability is at a higher rate than previous years.
Are fewer Chinese investments hurting the property sector
Many people worry about the application of new tariffs and how it will cause international investors to reconsider buying property in the U.S. While there is less interest in American properties, this decline is not new. CNBC says international interest is down by a quarter, but this provides prime advantages for U.S. buyers. Personal home buyers and small investors have access to more inventory now. The low rate of available properties in the past few years is no longer a problem in many urban areas across America.
Four out of five markets are easier for buyers to enter
Most major markets are shifting to a buyer’s market now making it much easier for new homeowners to get a mortgage. Some of the easier to enter areas include Los Angeles and San Diego Counties in California, Maricopa County in Arizona, and Harris County in Texas. Cook County in Chicago is another urban area seeing more economical home prices this year. It only takes a little over $50,000 a year to qualify for a home loan in most states versus $53,500 last year. This equates to nearly $300 less a month requirement for new buyers who want to purchase their first home.
Appreciation rates are soaring in two out of every five sectors
The median price of homes for sale in South Boston and Cohasset in Massachusetts is growing much faster than incomes. This fact means people who want to invest in real estate have a better chance of getting a high return on investment. Current property owners are finding they have higher equity values allowing them to perform necessary home maintenance. Other places seeing these changes include Detroit, Michigan and the Dallas and Fort Worth area in Texas.
Property investors and homebuyers looking for more selection, higher home values, and better mortgage rates may want to research the most recent market reports in-depth. Not every city is seeing a decline in costs or a rise in inventory.