With the US economy on a downturn and with the global economy also having the hiccups, it is small wonder that some people are on the lookout for the most sought after homes in the US today. But these homes are not
necessarily mansions that ordinary folk ogle. Actually, you might be
surprised what homes are really sought after today. Homes that have been
previously been lived in or previously owned by other folks are still well
sought after because they are considered a bargain. Others might balk at
this but practicality rules in today’s turbulent market. If you are in the
market for your own home, then it would be good to train your sights on
previously owned properties if you can find good ones in your area or
Some investors are rejoicing at the state of the national housing market
as well because they are able to reach into deep pockets to invest in
choice properties (previously owned or newly built). This is the type of
market that anyone experienced in spinning houses really benefits from
because sellers are anxious to find good buyers who will pay good prices
for homes that are at bargain basement prices. In turn, these investors
are eager to sell their acquisitions (after these have undergone repairs
to make them more attractive in this kind of market). So this is really a
buyer’s market for now.
Some markets such as Dallas, Denver and San Francisco are a bit overheated right now so it isn’t wise to delve into your reserves just to buy there.
Since job growth is peaking in these markets, it isn’t surprising that
inflation kicks in as well as far as real estate is concerned. However,
you can still find some quality purchases in these markets if you go slow
and cautious. Don’t rush into a purchase just because you have the funds
for it. Far better to carefully assess your options then make a wise
One factor that has influenced the purchasing power of the public is the
state of mortgage rates. On the one hand, you can expect to pay as low as
10% in down payment now compared to a high of 16% in the past. But with
mortgage rates affecting your credit power at the moment, it may make
sense to invest in smaller homes that are easier to pay for. This may mean
paying for a bungalow when you really want a two story home instead.
Everyone has to tighten their belts right now in this kind of market.
Though in some markets the price growth may have reached astonishing
heights, this is not really healthy for the industry as it has discouraged
buyers from aiming for quality properties of larger sizes and square
footage than what they can afford now. It can be safely predicted that as
the market starts to cool down, prices will hover in a range that is more
in tune with what the purchasing power of the public can shoulder. For
now, you can expect prices to stubbornly remain in the highs until sellers
realize the market isn’t turning their way.
The lenders are equally affected by the lack of interest for pricey loans.
As it is a buyer’s market, you can probably find a lender who is willing
to work with you even at lower rates than usual for your preferred
mortgage. It is advisable to work with a lender who can give you favorable
terms for monthly amortizations and length of payment period as well, if
you can find one. And you probably will find one since lenders need to
make money too regardless of the state of the US housing market. The key
here is patience and dedication. Even if your eye is still wandering at
this point it is still possible to find a great home to buy.
When will the housing market fully recover? Your bet is as good as
anyone’s at this point as the market has not recovered fast like the
industry prophets predicted. But stay optimistic anyway that you can find
that great new home that you are looking for at a reasonable price and
that you can hunt down a lender who is willing to let you borrow
sufficient amounts to cover down payments and amortizations for your
preferred property. You never know – there just might be a gem in the dirt
if you hunt for it long enough and carefully enough.