Tight supplies, rising rates and bidding wars have characterized market conditions for many buyers looking to secure the property of their dreams. A new survey conducted by Trulia and Harris Interactive shows that 41 percent of respondents are concerned that mortgage interest rates will rise before they are ready to buy. Finding a suitable home and qualifying for a mortgage were other major concerns. Read the full story
For Buyers, only the most fit will survive and succeed in purchasing a home – those with excellent credit and a sizeable down payment can compete with Investors paying all cash. According to C.A.R.’s 2013 Home Buyer Survey, 96% of buyers use the internet to find a home and 70% of those use their smartphones to do so. Not a laptop, not an i-Pad…. their phone. That is a significant change in how buyers shop for homes. Other factors Buyers will face in order to compete include:
- Tighter lending standards with 85% of buyers obtaining 30-year fixed loans (they have to put more “skin” in the game than before)
- Higher Down payments; the average is now 25%
- Rising interest rates
- It takes longer to find a home due to lower inventory of houses on the market ( average of 9.8 weeks)
- Instant Text notifications from Listing sites allow buyers to “jump” on a new listing before others,
- In multiple offer situations you will need to add a “cover story” page to your offer that makes you unique and appeals to the Seller’s emotional side.
Yet there is good news on the horizon. As the number of lower-priced homes available on the market begins to decline, Buyers will find the competition leveling out as Cash Investors rarely delve into properties that are priced over $500k.
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