Buying a Home in 2013: What to Expect
What should those buying a home in 2013 expect to face in the market as they go on the house hunt?
All expectations and forecasts predict an amazing year for the U.S. housing market in 2013 but that doesn’t mean it will all be easy sailing for those buying a home. What are you up against and how can you overcome the challenges?
Competition from other Home Buyers
Between a surge in domestic and international real estate investing and millions of hungry house hunters now getting their credit back on track and not wanting to miss out there will be more buyers in the market than we’ve seen in 7 years. This makes it critical to move fast and make great offers.
As home sales surge bringing up home values and unless there is an increase in housing inventory we will be moving into ‘sellers’ market’ territory in many areas again. This can result in difficult sellers, demanding deals on their terms, so expect it and have some patience.
Rising Home Prices
The above will all contribute to rising home prices. Most experts expect at least low double digit increases this year with some markets easily seeing 20-30% appreciation. This is a trend likely to continue for the next ten years at least, meaning this is still the best time to buy a home most will ever see in their lives.
Top economists predict 30 year mortgage rates will remain low throughout 2013 and likely under 4%. However, the real challenge will remain getting approved for a mortgage, with experts recommending those buying a home start the process at least 90 days in advance.