If you are in the market to buy a house right now, you may find it difficult to keep up with the competition. If you are looking to sell, you are doing it at the perfect time as homes are being snatched up as quickly as they are listed. Signs this housing market may be too hot include skyrocketing prices, buyers waving inspections, and low interest rates.
Today, there are fewer homes being built and not enough existing homes for sale to meet the general housing market demand. Many families are choosing to move from the city to more metropolitan areas. According to HousingWire, these are major factors contributing to house prices. As the demand for a house increases, the value of the home and asking price also skyrockets. The more desperate people are to buy a home, the higher they’ll pay to make it happen.
Buyers Waving Inspections
With buyers competing for the best offer, many buyers are waving inspection requests in the purchasing of the home. This makes it so the original homeowners can walk away from the home with no repairs or ties to the property. Prospective homeowners think that putting up with needed repairs along the way is worth waiving the inspection. This idea is not safe for the buyer or the seller. According to J Bixler Inspections, an inspection is critical because a house is one of the most valuable assets you’ll own. Make sure you protect yourself and your investment by asking for an inspection.
Low Interest Rates
Buying a home requires planning a well-thought timeline. To put in a competitive offer, you need to get preapproved (not just prequalified) for a conventional mortgage loan. A cash offer is even better because it sets you apart from the other buyers. However, if you cannot afford that right now, interest and mortgage rates are being offered at a historically low price. They can offer them so low because houses are being sold so quickly. According to Ramsey, the 2021 federal interest rates are as low as 2.36 percent, making it easy for anyone to qualify and support a mortgage.
While a hot buying market is beneficial for the seller, it is not sustainable for long. It is wise to take your time when purchasing a home. Find one in the right location for the right price. Sooner or later the housing market will cool down and more options will be made available to you.
Read this next: When is a Reverse Mortgage Right for Your Loved One?