Skip to main content

Category Archives: Home Buyers

Why Now Is a Good Time to Enter the Housing Market

Key Takeaways:

  • Low default rates are a positive sign of the housing market’s resiliency  
  • There are signals that the market is shifting to favor homebuyers
  • Our team is ready to help you achieve your goals, so contact us today!

As with any investment, the best time to buy is when prices are low. It’s no different when it comes to real estate. With one historic and unprecedented event after another these days, knowing when to move in today’s market can be complicated and intimidating, but it doesn’t need to be.

Analysts agree about where the market is likely headed. So as 2022 winds down, let’s review the latest news to help you better understand where your opportunity lies (and why now may actually be the best time to buy!).

Low loan defaults are keeping the housing market healthy

Portrait Of Happy Family Showing Key, Standing In Living Room.

The current housing market is not a repeat of the previous financial crisis in 2008. The two primary factors that contributed to the housing market crash back then were cheap credit and lax lending standards. Remember the terms subprime, mortgage-backed securities, CDOs, and adjustable rate mortgage? Thankfully, that’s not what’s making headlines this time around.

Today, lending standards are more strict than they were 15 years ago, and because of this, most homeowners are not teetering on loan default like they were back in 2008. In response to the global COVID-19 pandemic, banks introduced various programs to help homeowners stay current on their mortgages and avoid default. The result is historic mortgage balance lows, with loans that are 90 days past due pegged at just 0.5%. That’s a far cry from the staggering 11.36% rate back in 2010 when homeowners struggled to make payments.

Economic signals indicate this is becoming a buyer’s market

real estate agent Delivering sample homes to customers, mortgage loan contracts. Make a contract for hire purchase and sale of a house. and home insurance contracts, home mortgage loan concepts

Putting today’s housing market in proper historical context is paramount to making an informed decision. While the current 7% mortgage interest rates are certainly higher than the pandemic-induced low of 2.65% in December 2020 (the lowest in history!), that doesn’t mean you should avoid buying a home. Compared to the all-time high of 18.45% set back in 1981, today’s average rate of 7% is suddenly far less imposing. 

Experts all agree: home equities are going to decline. The only dispute between analysts is by how much, with some analysts projecting an average decline of about 20%. According to Black Knight, a mortgage technology and data provider, home prices have declined slightly, but mortgage holders possess $11.5 trillion in tappable equity.

Even though recent news and numbers seem to suggest that the real estate market may be experiencing a slowdown, Black Knight added that the “market is on strong footing to weather a correction” given that the total market leverage (including both first and second liens) was just 42% of mortgaged homes’ values – the lowest number on record. 

Homes are always a solid investment strategy

Beautiful, Newly Built Luxury Home Exterior

Eager would-be homebuyers waiting for home prices to fall have some good news ahead of them. But, homeowners have good news, too. While there’s plenty of panic around a “decline” in home prices, the Case-Shiller Index reports it’s just 2.2%—meaning homeowners are still in command of a 38.33% increase in the last two years.

With mortgage interest rates hovering around 7% and home values stabilizing, the tail-end of 2022 or 2023 may be the best time for you to finally make that move, especially as two-thirds of major regional housing markets (98 out of 148) prices continue to drop. 

We’ll Help You Buy For the Right Price

When you’re ready to make your move, reach out and contact our trusted real estate team. We know the local housing market and can help guide you to the best deals available on the market today. And, there are plenty of ways to extend your buying power and reduce your interest rates! Our team can’t wait to share our proven strategies with you, so contact us today at The Bouma Group, Realtors at 734-761-3060 or info@bouma.com!

Top 5 Tips for Home Buying in Today’s Market

Key Takeaways:

  • There are plenty of strategies to successfully buy in today’s market.
  • Lean in on the expertise of your local real estate—we’ve seen it all!
  • Our team is ready to help you achieve your goals, so contact us today.

Whether you’re shopping for your first home or relocating to a new area, purchasing a home in today’s real estate market can be daunting. However, the good news is that today’s housing market can actually be helpful if you’re a prospective home buyer who knows how to play the game well. When it comes to making a winning offer on your dream home, you must know certain particulars of the home buying process to be successful.

So, let’s look at the top five home buying tips that will help to play the real estate game more effectively and pave your path to home ownership.

1. Determine and know your budget

Woman looking over finances to buy a home

Continue reading

Why Now Is the Right Time to Buy Your Dream Home

Key Takeaways:

  • Mortgage rates are going up, but they’re actually not that high.
  • You’re still in control: you can get yourself a lower rate with these smart tips.
  • Find opportunities in your local real estate market—contact us today!

Many would-be homebuyers putting off buying their dream home because they are fearful of rising mortgage rates. It seems like the news is non-stop negative when it comes to talking about the housing market. But it’s worth putting those headlines into perspective. In 1981, mortgage rates hit an all-time high of 18.45%! On a 30-year fixed mortgage right now, you can expect to find rates around 5.9%—that’s 68% less than the highest mortgage rates homeowners have historically managed. Let’s take a look at today’s mortgage rates and see why this is still the time to buy your dream home.

Continue reading

Why You Need a Real Estate Agent in This Shifting Market

Key Takeaways:

  • Understanding the ebbs and flows of the market is crucial to success
  • A real estate agent is on your side and knows your local market best 
  • Start planning your next move now – contact us!

What to Do When the Market Changes

Buying or selling a home is one of the most exciting moments in people’s lives, and it’s also affected by broader economic trends. The challenging process is filled with details and detours. Today’s housing market is continually pivoting amid persistent global pandemic-related influences and a subsequent housing supply crisis.

If you’re looking to buy, sell, or both, employing the services of a trusted real estate professional is a critical decision that can make or break your deal. The local knowledge and experience they bring to the table will help you navigate the real estate investing process wisely, especially in today’s rapidly shifting housing market. 

Continue reading

Is It Better to Rent or Buy Right Now?

Key Takeaways:

  • Homeownership remains one of the best ways to build long-term wealth
  • The cooling housing market is causing bidding wars for rental units
  • Our experienced team of dedicated agents will help you secure a home!

The Cost of Rent Is Rising

Should you rent or buy? Recent reports on current conditions in the real estate market have highlighted a new trend developing in today’s heated market: rising rents. In addition to increasing rental costs, bidding wars within the apartment and housing rental market are increasingly becoming commonplace, with some offering hundreds of dollars more than the asking price.

If you’ve been renting and wondering if buying a home instead of renting would be a better use of your money, the good news is that, yes, buying a house is still a better use of your money. So let’s take a closer look at what’s happening in today’s market and why buying a home remains the better option for building your wealth versus renting. Continue reading

The 2022 Summer Housing Market

Key Takeaways:

  • There’s a lot to be excited about with this summer’s housing market.
  • Homes are for sale with the features you want, like swimming pools.
  • Our team knows how to help get the most for your home – contact us!

Despite news about a looming recession, high mortgage interest rates, and low inventory negatively impacting real estate, many good things are still happening and worth getting excited about in the 2022 summer housing market.

Some promising news in today’s historic housing market is that home demand remains strong, with well-vetted, qualified buyers making cash offers, creating a more balanced seller’s and buyer’s market. Additionally, home values continue to defy the odds and climb higher with no end in sight, helping your equity gains grow, which creates opportunities to put your equity gains to use that have never been better. Continue reading

The Top 5 Things You Shouldn’t Do When Buying a Home

Key Takeaways:

  • You want to make sure you’re doing everything right when it’s time to buy a new home in a competitive market.
  • Stability with your employment and finances is super important, so don’t make any sudden changes.
  • Don’t skip out on working with a buyer’s agent—an experienced real estate agent is an invaluable partner.

Buying a home is an exciting and sometimes nerve-wracking experience. In addition to finding the right place, you also have to find the right mortgage, and with low inventory in many markets and rising home prices nationwide, securing your dream home can be a challenge if you don’t make the right decisions when preparing to buy. Here are five of the most common mistakes you should avoid when buying a home. Continue reading

Inflation – and Home Values – Are Up. Should You Sell?

Key Takeaways:

  • Home values are rising faster than inflation, making homes a prized asset
  • This housing market offers unique opportunities for buyers and sellers
  • Contact us today to secure your assets and safeguard your future!

The state of real estate and inflation

As inflation soars to near 40-year highs and raises the cost of everything, many are looking for innovative ways to secure their assets against inflationary losses. Additionally, given the housing market’s recent volatility (primarily driven by historic low levels of housing inventory that have caused an imbalance between supply and demand), it’s understandable that many might consider real estate to be a wrong or risky move right now. But the great news is that nothing could be further from the truth. Let’s explore how and why buying or selling a home can safeguard you against inflation. Continue reading

Should You Be Worried About a Housing Bubble?

Key Takeaways:

  • Real Estate Bubbles: what are they, are we in one now, and why there’s no cause for alarm.
  • It’s natural to compare today to 2008, but this housing market is vastly different.
  • You can lean on our expertise! We’ve seen all types of markets, so reach out with questions.

With home prices soaring to levels never before seen, it is undeniable that the U.S. housing market is in uncharted territory, with many industry experts speculating that we’re in the midst of yet another housing bubble. However, like snowflakes, every bubble is created differently and is unique. Continue reading

Oil and Gas Prices on the Rise: How It Changes Real Estate

Key Takeaways:

  1. Oil and gas prices are the highest in United States history!
  2. Individuals and families are shifting how they think about housing, from suburban versus urban to downsizing or going multigenerational.
  3. It’s critical to work with an agent who understands the right fit for you and your family.

Record-high oil and gas prices are changing home buying and selling

It’s difficult to escape the news: gas prices are surging across the nation, with the increase averaging $1 per gallon. With costs at historical highs, the ripple effect changes how we think about everything. That includes the largest line item on any household’s budget: their home. How will this new reality change how people buy and sell real estate? Let’s take a look at some of the main considerations. Continue reading