The sun is out, birds are chirping, and prospective home buyers are venturing out to find the perfect home for their family. Home buying season starts around the same time every year, the difference this season is that there are 3 percent less homes available than last year across the country.
“Low inventory, strong demand and tough competition will be defining characteristics of this year’s home shopping season,” according to Zillow Chief Economist Dr. Svenja Gudell. “Even though interest rates are rising, buyers are eager to start their home search. If you’re a prospective buyer about to enter the market, keep in mind that it’s rare to get the first home you make an offer on, and homes in particularly hot markets frequently sell for over asking price. Buyers should give themselves enough time to get their finances in order and find a real estate agent they know and trust before jumping into the market.”
Supply may be down, but home values and rent prices are on the way up. Across the country, home values are up 7 percent since February 2016. National median rent in the United States is up 1.2 percent during the same time period, with a median monthly payment of $1,406. With supplies dwindling, all signs point to home prices and rent continuing to rise in most markets, making now a great time to buy. Contact a mortgage loan officer to find out what you are eligible for.
According to Zillow, mortgage rates started the month of February at a high of 4.01 percent, but ultimately ended down as low as 3.89 percent. This trend is not expected to continue however, so it could make sense to try to lock in a rate as soon as possible.