Purchasing property is the largest investment most people ever make, and for this reason it’s not unusual to get a few butterflies in your stomach before closing on a home. Some individuals would be more inclined to jump into the homebuying process if they knew what the future had in store, but unless your own a crystal ball, this task can be difficult.
Although it’s nearly impossible to predict the future for most people, a recent survey conducted by Redfin got a feel for consumer expectations about the housing market and mortgage industry in the next 12 months.
According to the company, 81 percent of Americans believe property values will increase significantly during the course of 2013. If this occurs, you should consider taking on an affordable FHA mortgage or VA loan to purchase a home before you are forced to cope with higher asking prices.
However, it’s not only buyers who would benefit from rising prices in the near future. In the wake of the housing market collapse, property values plummeted more than 30 percent in some parts of the country. This resulted in many homeowners being unable to sell their properties, as it would result in a loss on their investment. But the survey found that 49 percent of home-owning respondents said they plan to list their properties on the market some time this year. This was a notable jump from 45 percent when the survey was last conducted in the third quarter of 2012.
Do your homework
While average home prices are expected to rise and mortgage rates could remain affordable in the next 12 months, always conduct thorough research on your local area and personal financial situation before starting the process.
To this day, some local marketplaces continue to struggle when compared to national real estate averages, while others exceed them. Getting a feel for what’s happening in your area can indicate where home prices are and where you can expect them to be in the future. A quick internet search will show you recent closing prices as well as those that occurred in previous years. With this knowledge you will be able to better tailor your offers, know what types of mortgage deals you might receive and ensure a successful homebuying process.
By staying up-to-date on a fluctuating housing market, you’ll be able to make informed decisions when it comes to refinancing your home loan or qualifying for a mortgage. Using a home mortgage rate calculator provided by Freedom Mortgage to determine your best course of action could keep some extra cash in your pockets every month.
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