If you have found yourself in a position to purchase a home in the next 6 months or a year or planning ahead for the next few years, you might be asking yourself some important questions.
How much can I afford? What is the market like right now? What can I be doing right now to get ready? Where do I want to buy a home? Where do I start?
A home is one of the most exciting and largest purchases most people will ever make in their lives. It can be exciting, but can quickly become overwhelming if you don’t understand the process.
What is going on with the housing market right now?
We are still seeing high demand and low supply even though interest rates are getting higher. Historically when interest rates go up, it decreases demand because getting a loan becomes more expensive. Naturally, because of the increased loan price (from higher interest rates) causes the home prices to go down. This is because loans are now more expensive and it costs more to get into a home. Although, at the moment, demand does not seem to be slowing down, and buying power does not seem to be an issue for a lot of buyers.
What will we see the next year?
The general consensus from most real estate professionals who are in the field day in and day out is that demand (amount of buyers) will slow down. The prices of homes have been climbing rapidly over the past few years but because of higher interest rates, the prediction is that demand will go down and the prices will still go up but slower.
Thankfully if you live in Iowa, we are pretty protected by the extreme housing prices you might see in California or Florida.
It is important to go into buying a home with a plan of keeping that home for the next 5 plus years. Maybe 5 years ago you could have gotten away with buying a home, holding it for two years, and then selling and breaking even, but today that most likely is not what we are expecting to happen.
To the homebuyers.
This can be intimidating to a first-time or second-time home buyer and naturally, this causes a lot of people to seek help. That is the purpose of finding a good Realtor that can help you navigate the uneasiness and meet you where you are at in the process. It is important to find a Realtor that cares more than just getting a paycheck but wants you to be successful in the end. If you live in my area (Northeast Iowa) I would love to chat, if you don’t I would love to get you connected with the best Realtor in your area.