3 tips that can help you navigate the real estate market now

During the pandemic, the housing market was red-hot. Houses were bought way over the asking price or with all-cash offers. People even bought houses without getting an inspection just to beat out other offers. Some real estate experts believe that the record low mortgage rates and the increased demand for people to work from home fueled this frenzy for many buyers who were afraid of missing out.

The market has settled a bit since those days, but buyers still face new struggles. Mortgage rates are rising, as is inflation, which may affect some buyers’ budget choices. The good news is that housing prices are dropping fast. Research from the Federal Reserve Bank in Dallas predicts that home prices could plunge by as much as 20% in 2022. Lower housing prices are a boom for would-be buyers, even if rates are rising higher than they were. As a result, buyers may be able to snag a deal that wouldn’t have been possible even a year ago!

The real estate market is confusing, and the last few years have shown us how wild the rollercoaster of prices, inventory, and mortgage rates can be. So it’s only natural if you feel anxious during the home-buying process or afraid of missing out. So how can you manage your anxieties during this uncertainty? Here are a few tips we recommend.

• Stay on top of your budget. It is possible to snag a great deal on a home right now, but you have to be mindful of your budget. Make sure you know exactly how much you can afford and consider additional expenses such as utilities, property taxes, HOA fees, closing costs, insurance and more. You must know exactly where your money is going and how much you can spend.
• Work with a trusted real estate agent. A seasoned and experienced real estate agent is your best tool while house hunting. They can help you navigate your local market, recommend what type of offers to make, and help arrange your sale to best suit your needs. When choosing the right real estate agent, ask about their local market experience and sales record and seek references from past clients.
• Get pre-qualified first. If you want to snag a deal in this market, you need to be able to move quickly on a sale. Your PRMI loan advisor can help. Meet with an advisor before you start the house-hunting process and get pre-qualified for financing so you can put in an offer quickly and get your mortgage arranged. Pre-qualifying for financing is one of the best ways to give you the confidence to make an offer when you feel it’s right instead of waiting until you are approved.

Remember, the best way to navigate the real estate market is to be prepared. Following these recommendations will help you take control during a confusing time and arm you with the tools to act fast if necessary. Aligning yourself with professionals who know the real estate industry and your needs, like your PRMI loan advisor, can help you feel calmer and more prepared to buy the right home for your needs. If you haven’t yet found your local PRMI advisor, visit our website to find an office near you! https://www.primaryresidentialmortgage.com/