04/13/2022
I just saw a post in a Facebook group asking how anyone is supposed to be able to afford their first house in this market—which, obviously, is completely bananas. 🍌 There were many comments along the lines of “wait for the bubble to burst.”
So I just wanted to share what I’ve been learning in being around actual real estate experts who know the ins and outs of the industry, and have seen decades of trends close up: it’s just not that simple, unfortunately.
There are many different contributors to the housing market, including lending practices and laws, supply and demand (housing inventory is at a historical low, while Millenials and Gen Z are now or will soon be ready to buy houses, so there’s a huge demand there), interest rates, etc.
“Lending standards have gotten tighter and credit scores for new mortgages are much higher on average now than they were in the early 2000s,” says Nicole Bachaud, an economist at Zillow. “What’s much more likely is a gradual slowdown in the pace of price appreciation where home prices continue growing, just not as fast as they are now.”
So here’s my two cents, backed by real estate experts I’ve had the privilege of working with and learning from:
The best time to get into a house is yesterday!
Interest rates historically rest between 6-10%, so they’re actually still considered low, even though they’ve been creeping up—and are projected to keep rising. The sooner you can get in, the lower your rate.
If you want to upgrade, but are thinking you’ll wait for things to calm down, consider that home values are projected to keep going up. So, you may be able to grow your equity at a higher rate if you get into a higher-value home sooner.
If you’re looking to buy your first home and figure it’s hopeless—that’s understandable, because that’s how most of the conversations are sounding now. “I don’t know how young people are supposed to get into a home in this market!”
⭐️ Talk to an EXPERT, not someone on a Facebook thread who throws out blanket statements! A good lender knows the programs and systems that are out there to help you qualify, and will guide you through the process. If your credit is in the way, they can guide you through the steps you should take (in the right order—super important!) to clean it up. Then, a good Realtor who’s trained in the market and negotiating (🙋🏼♀️😇👋🏻) can help you navigate the process of finding a house and submitting an offer that gets accepted.
I truly wish I’d known more about this process years ago—it took us 11 years to buy a house and get the gift of our own space. I’m so excited to now be equipped in helping my clients find a place to call HOME. ✨ 💗 🏡
I’m already connected with excellent lenders in the Northern Utah area that I can connect you with, and if you live elsewhere, no problem—a good lender will always have a trusted network they can refer you out to.
Please don’t hesitate to reach out to me if you have questions!
Quote source: https://www.forbes.com/advisor/mortgages/will-housing-market-crash/
