Once you start to get more serious about making a move, you will want to understand the current market conditions. Here are a couple of things to keep an eye on while you peruse homes.
Pay close attention to the trends in the area(s) you are looking to buy in. This is where a real estate agent can be critically important. Understanding if pricing is on the rise or the decline in a specific area, can help you identify when is a good time to buy or not.
How long are listings lingering on the market in the area you are browsing? If homes are selling quickly, it indicates a hot or seller’s market and can usually lead to multiple offers or a bidding war in some cases. Getting a home below market value is rare in this kind of market. If homes are staying on the market for a relatively lengthy time, it means that it is a cool or buyer’s market and your chance of getting a home at less than asking price increases.
These rates are strongly tied to our own economy and the Federal Reserve Board (FED). When the prime rate is increased to curb inflations and slow economic growth, mortgage rates rise. When they cut interest rates to stimulate economic growth, mortgage rates usually drop and makes buying a home more affordable. Pay close attention to where rates are and where they are heading when looking to buy.