Buying your first home should be one of the most exciting times of your life! You have the image of the "perfect home" in your head and you've set your budget but when you actually take a look at the market, you wonder if now is actually the time to buy! How do you navigate the tedious world between renting and home ownership and what resources are there to help you?
The last year has been one of surmounting frustration for those looking at buying their first home. Low inventory across the board caused home prices to rise as competition for buying homes maintained fierce. However, as many trends, the patterns of lows and highs are predictable and ever changing.
Finally, a glimmer of hope for those looking to enter the housing market has surfaced; Optimism for first time homebuyers from the monthly sentiment survey from Fannie Mae shows increased optimism amongst renters and first home buyers alike.
Housing confidence in September hit an all time high and that confidence is expected to continue. This sudden excitement to buy stemmed from a large group of renters whom were surveyed saying that now would be a good time to buy. The opinion that home prices would increase dramatically over the next year had dropped significantly. Confidence is key. This was all said even acknowledging that the biggest bar to entry into the housing market was home prices.
Sarah Shada from the Economic & Strategic Research Group further confirmed these results by saying, "They may be able to take advantage of low down payment mortgages that require significantly less upfront than the traditional 20 percent, as well as programs offering grants towards down payment and closing costs. Our past research demonstrates that most people remain unaware of these types of programs and tend to overestimate the size of the down payment needed in order to buy a home.”
Deciding on the right time to buy a home can seem daunting and as with anything, it is crucial to explore your options throughout the home buying process. Decisions will need to be made, but there are options available to help you reach your ultimate goal of buying your dream home. Check out our article about financial preparation for your first home