With the ever-changing house market, home buyers should be able to keep themselves abreast with the latest and tried-and-true advice on house hunting.
The economic data team of realtor.com were able to come up with some great advice based on the stats that matter to help buyers find the perfect home for them this 2016.
"Buyers looking to close this year need to keep an open mind and be prepared to move quickly when they find a home that meets their needs," says Jonathan Smoke, Realtor chief economist, citing "fierce competition among buyers."
Here's the list:
Start your search early
Topping the list of tips that the team came up with is starting the home search early, says Smoke.
"If you're intending to purchase, based on the volume of house hunters who are just like you, consider doing it sooner rather than later-you're likely to get a better price and a better mortgage rate," he says, also citing the high inventory during off-peak months.
According to a survey conducted by Realtor, 85% of the buyers are looking to enter the market during spring or summer and 50% of listings will roll in on January and February. By starting early, home buyers can benefit from the low competition and the same number of homes available.
Comparison shop for mortgages
"Work as hard on the mortgage as you do on finding a home-this will pay dividends over the life of the mortgage that you have," Smoke says. "Don't just assume that the 30-year fixed mortgage is the best for you."
By the end of the year, mortgage rates could reach up to 4.65% and house prices could go 3% higher over the year. What most home buyers don't realize is the variety of mortgage products available which can affect what they pay, shares Smoke.
When qualifying for a loan, a low interest rate can be the game changer - not including the amount of money that consumers can save over the course of the loan.
Consider a new home
Smoke says that new construction can help ease the current housing crunch, yet most home buyers don't even consider it in their list of options.
"You either know about new homes or you don't know about new homes," he says. "The vast majority of people don't, and they make the assumption that they're not right for them because they're too expensive, et cetera."
It is important to keep your options open, says Smoke. This 2016, there will be a surge of new homes, and knowing about them can help consumers evade having to face competition.
While new homes can be pricier, they offer warranties on structure and appliances which means you won't have to worry about hefty bills on repair for the first few years.
Picture yourself in the Midwest or the South
This year, the biggest issue is the prices, giving consumers the problem of finding a home within their price range, and those coming from the Midwest and South have the advantage.
Local markets such as Dayton, OH; Birmingham, AL; Harrisburg, PA; Augusta, GA; and Des Moines, IA have higher affordability, increasing inventory, and favorable lending for buyers, which are good areas to look into if you consider relocating.
