Posted March 11, 2018 in Real Estate Trends
By all measures, the housing market is on a very positive track reflecting the outlook of persons who are seeking mortgages. While overall sales of homes remain below the 2006 peak that happened just prior to the financial crisis, new-home sales last year increased by 10 percent over the previous year according to the National Association of Realtors. I anticipate that we’ll see another 10 percent increase this year from last year because of still low interest rates and amenable tax considerations.
With the largest category of applicants for mortgages being those who are under 35, the mortgage process is especially responsive given the longer lengths of employment status as well as higher wages documented among those applying for mortgages this year.
That said, finding your home, sweet home and joining the 64.2 percent of households who now are home owners is still a competitive process. This compares to 63.7 percent of households who owned homes last year. At Peak Mortgage, we are seeing more activity toward assisting applicants through the understanding of various contingencies to help buyers better compete.
Those who purchase homes are expected to see very positive returns into the future based on a purchase made this year. According to the U.S. Census Bureau, household formation correlates positively with housing demands. Millennials are forming new households estimated to reach beyond 1.35 million from the current 925,000 over the next five years.
Those that buy-in now are best positioned for upward future valuations. Home prices have appreciated at a mid-single digit rate over the past six years including last year’s six percent increase. Some experts in the industry are suggesting that there will only be a moderate increase in valuations this year at around 3 percent. This gives potential buyers a better chance to find their home, sweet home due to more contained price range among buyers. The difference will be found in the contingencies that a buyer puts forward.
How does home ownership look on you? Start before the big spring rush to buy a home gets here! We spring ahead to daylight savings time today. Make an appointment to meet with your trusted home mortgage advisor to find out how to spring ahead of the competition who wants the same home you want.
We lend where we live,
Mortgage Advisor • MLO# 229675 • Peakmtgnw.com