Recently, I have had lots of people asking me if we are in a housing bubble and if they should wait to buy a home. The simple answer is, if you want to buy a home, BUY IT NOW while you can still afford it. I have had lots of clients get priced out of the market because they cannot pull the trigger and are worried they are buying at the top of the market and want to “wait” for the bubble to burst. Now they will likely have to wait several years for prices to drop into where they can afford it again. Prices are not going down any time soon. So, if you truly and sincerely want to buy a house, now is the time to do it.
Tian Liu, Chief Economist for Genworth Mortgage Insurance commented, “…we believe a slowdown in home price appreciation will be unlikely in 2017 and 2018,” said Liu. “We do not believe that the strong growth in home prices is leading to another housing bubble. A key feature of housing bubbles is speculative demand. Today, first-time home buyers are out-bidding investors and cash-buyers.”
[Read the Entire Article HERE]
First time home buyers are using their borrowing power to edge out investors and cash buyers. It’s just a matter of if you want it badly enough. They are also utilizing special mortgage products to help them to be successful.
Many buyers are still looking for a “deal” and want to make some outrageous demands of sellers. The days of getting a “deal” in real estate are a distant memory right now. Sellers are still driving the bus by demanding high prices and getting them, and there is still competition in the form of multiple offers. I’m not saying that you can’t ask for less than asking price, but I would only suggest doing that if it has been on the market for quite a while. If a home has lingered on the market these days, it is likely because it is over-priced or poorly marketed. In the latter case, you MAY be able to get a better deal on a property.
When buyers are competing in multiple offer situations, they should be prepared to fail a couple of times. Even with the best offers written, if the competition is crazy aggressive, buyers may not get an accepted offer. But keep at it! Eventually, you will find the right property at the right price and you’ll be aggressive enough to get what you want. The bottom line is if you want to be successful at buying a house right now, number one, trust your Realtor and second, be ready to don the armor, toughen up and go boldly for what you want.
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