We’re back – with our special ‘Here Come the Holidays….’ all about the upcoming holiday season – and what it all means to real estate.
Of course, Thanksgiving is this coming Thursday. And on that day, many Americans will pause – and express their thanks, for all the wonderful things in their lives. And many will include family, friends and – home.
So let’s take a few moments right now to talk about all the things buyers, sellers and homeowners can be thankful for – this holiday season.
Starting with buyers.
Sure – it’s tough market. Not many homes to choose from, intense competition, rising prices…it’s not easy! In many markets, buyers find that if they see a house, and sleep on it – it’s gone by the next morning! So unless you act fast – you might never get a house! Again – that’s one tough market!
But you know what they say about giving thanks – it’s all about setting aside your difficulties, and recognizing all the wonderful things – right there in front of you.
For One? Mortgages are easier to get. More lenders are saying yes to potential buyers – and that’s opening a lot of doors. In many cases, lower credit scores are OK. Some lenders are granting mortgages to borrowers who have a score of 620 – and sometimes even lower than that! That helps a lot.
Also, lower down payments are OK too! The days of 20% down – are long gone. Now you CAN put down 20% if you have it….but Freddie Mac and Fannie Mae have programs that allow a 3% down payment….and, if you also consider that FHA allows a 3-½% down payment – it means many buyers can get into a home faster – without saving for years and years.
Also, many lenders are allowing a higher debt to income level – very helpful for people with the extra burden of student debt.
And of course – best of all? Interest rates are still incredibly low! Talk about getting in at the bottom of the market! Getting a home loan today – at a little bit higher than 4%? That will save you tens of thousands – maybe hundreds of thousands of dollars, over the life of that loan. That is a huge advantage for home buyers – and a great reason to give thanks.
That same thing also helps sellers, for two reasons….first, it means more buyers will qualify for a mortgage – so that increases the number of buyers who might be able to purchase their house. Second, most sellers go on to buy another home, so after they sell one house, the one they buy will be more affordable, thanks to today’s crazy low interest rates.
Sticking with sellers, they, of course, have plenty of reasons to be thankful. There just aren’t that many homes for sale now, and the laws of supply and demand are making this – a seller’s market. So – they’ll find a steady stream of buyers coming to see their house.
They might find multiple offers pouring in! And as those buyers compete, their sales price might just go up, and up. So, plenty of good things happening for sellers – plenty of reason for them to be thankful too.
And that low inventory also means that prices are rising in most markets across the country. So many, many sellers will find their net profit will be much higher than they ever thought. And it means that if they pour that profit into their next home, it will be more affordable. Again, that’s a great reason to be thankful.
After all, the best possible result for a seller – is to get the maximum profit in the minimum time…..and in today’s market? That goal is within reach.
Oh and one more thing. No matter whether you’re a buyer or seller, you both have one more thing on your side. And that is – you will never have to go it alone. Because no matter what kind of transaction you’re doing, your REALTOR® will have your back, They’ll represent your best interests in every deal you do, so you can make sure, you’re doing it right. They’re the local market experts. And their knowledge, their experience and their dedication will all work in your favor – whether it’s a seller’s market, a buyer’s market or a balanced market.
So there you have it. Plenty of reasons for buyers and sellers to be thankful this Thanksgiving…even though it’s a tough market.
But what about if you’re not buying – or selling? What if you own your own home – and there’s no deal in sight? Well, there’s plenty for YOU to be thankful for also – we’ll talk about that in our next hour.