The Slow, Steady Rise In Home Prices
- From 2017 to 2018, the US home price market saw a massive jump of 10%. In 2019, the story is much different. Yes, the price is still increasing but at a plodding pace. Add to it the total number of houses up for sale this year is forecasted to increase by only one percent. The reason for this slow rate is twofold:
- The interest rates on a mortgage have increased.
- The overall economy of the country is uncertain.
- The two factors are combining to make buyers more cautious about purchasing a house. Those who are still looking are in search for new construction.
How Do You Buy A House In High Price Market?
- For those who are still adamant on buying a house in the current market, there are some necessary steps.
- Find out your budget, an amount you can afford. Apply a mortgage calculator to determine out how much monthly payment you’ll be able to handle comfortably.
- Stick to the budget. Do not end up buying a home because a competitor may bid on it. If you purchase a house that is not in your financial limit, you create chaos in all your finances. Don’t be pressurised by outside forces.
- The best way to find out if you can afford a house is to see if you can secure a down payment of at least 10% on a loan for fifteen years. If it is not possible, then your monthly mortgage will be through the roof.
A Few Options To Consider While Buying A Home
If your heart is set on buying a home this year and you have a budget in mind, yet can’t find the perfect property, then consider these options:
- Get rid of nice-to-have options. Commit to must-haves and look for properties that include it. For instance, a cheap home in a good neighbourhood makes sense as you can always improve upon it in the coming years. Make sacrifices.
- Expand your search area to a less popular neighbourhood if the one you want is not within budget. It is smarter to shop in more locales than to stick to one.
- Save for a year more and then look for a home. Patience and some time can do wonders for your budget!