The most common question a Realtor gets asked is, “How is the real estate market?” Depending on whether you are a veteran home buyer or a first-time home buyer, the answer could be different.
For these purposes, The Gamache Team offers these tips for Tri-Valley home buyers during an uncertain real estate market.
Tips for Tri-Valley Home Buyers Wanting to Move Up
Tri-Valley home buyers who want to purchase a larger home may want to wait a bit longer to move up. The rise in interest rates, state of the economy, and inflation make for a nervous buyer’s mood.
According to the latest Forbes Mortgage Rate Forecast, “Rates for home loans remain caught in the ongoing battle between still-high inflation and the Federal Reserve’s campaign to rein it in, which has played a role in driving long-term mortgage rates higher, consequently hampering the housing market.”
Higher interest rates mean Tri-Valley veteran home buyers will either be priced out of the home they want to move up to, have to put more money down, or have to pay a higher mortgage.
Waiting for lower interest rates and a more stable economy may put them in a larger home with a more reasonable down payment and mortgage.
However, as we mentioned in our last blog, Tri-Valley home buyers who wait to move up may also be competing with other buyers who have these exact thoughts in mind.
Sometimes, it’s a good idea to crunch numbers and evaluate your expectations of what you want in a home, a lifestyle, and how much you want to spend in the long run.
For reference, here is a chart of the current mortgage rates courtesy of Bankrate.com.
Tips for First-Time Home Buyers in the Tri-Valley
If you are a first-time home buyer looking to purchase in the Tri-Valley, you may qualify for loan programs specifically designed for first-time home buyers. As a first-time home owner, you may qualify for a lower interest rate, assistance with closing costs, and lower down payments (source: Bankrate.com).
It’s a good idea to meet with a professional lender to find out your options, gather your paperwork, and get pre-approved. If interest rates and the prices of Tri-Valley homes are still too high, use this time to build up your credit, pay off high-interest credit cards, save more money towards a down payment, and consider how a new home will impact your lifestyle and your finances.
Also consider looking at some Tri-Valley homes that have been sitting on the market a long time as you may have a better chance of obtaining them at a price you can afford; edit your list of “wants” and “must haves” in a home; look in other areas of the Tri-Valley that you have yet to consider; and advise your Realtor of the types of homes you are looking for in case he or she knows of one that is coming on the market or can be sold off market.
Helping Tri-Valley Home Buyers for Over 50 Years
The Gamache Team has a history of helping home buyers since the 1970’s. Our experience shows that we can ride the storm of an uncertain real estate market and still thrive.
If you are a home buyer looking to move up or purchase your first home, we would be honored to share the Tri-Valley home journey with you.
Call us today, and let’s start the process! (925) 918-0332.