Realtors can help in difficult times
The end of the school year and the start of the summer season mean a growing number of Americans are on the hunt to purchase a home, but many could have trouble finding a home to buy. A survey by the National Association of Realtors reveals that difficulties finding the right property have surpassed challenges obtaining financing as the most cited reason clients are not purchasing homes.
This finding speaks to the tightened inventory conditions seen in many areas of the country. There simply aren’t enough homes available to purchase — predominantly at the low end of the market, where first-time buyers are most likely to shop.
There’s more demand than inventory, which has pushed up home prices. People spend countless hours going through the process of obtaining a loan and locating their perfect home only to find themselves competing in a bidding war.
Here in Dayton, the market remains very tight. Housing inventories decreased in April, falling to 5,476 existing homes available; this represents a 4.5month supply, down from a 5.3month supply in April 2014. NAR Chief Economist Lawrence Yun says a housing supply of over six months is needed for a generally-balanced market between homebuyers and sellers. He predicts that we will continue to see a balancing act between housing inventory and price growth, and that more inventory and increased newhome construction will help to foster healthy market conditions.
What should potential buyers looking to enter the market now do to increase their chances of finding their dream home?
Buyers need to carefully evaluate their finances and get prequalified or preapproved for a mortgage. This will position you to be able to make a firm commitment to buy and your offer will be more appealing to the seller.
Making a clean offer with as few contingencies as possible can also help buyers who find themselves competing with multiple bidders. The best offer isn’t always the one with the highest price. It’s the one with the fewest hassles and restrictions. Eliminating or reducing the number of contract contingencies can help make your offer stronger.
Most importantly, I recommend working with a Real-