Many home buyers still believe that they need to put down at least a 20 percent down payment in order to purchase a home. Whether you are a first-time home buyer or moving up to your next home, there are grants, programs and assistance available for qualified buyers offered by Ameris Bank. Get started by learning more about your options. read more
By Irene Hall, REALTOR® with Keller Williams Atlanta North, and Reid Clark, Senior Branch Manager for Silverton Mortgage
Listening to the media or following your social feed gives the impression that it is doom and gloom for the housing market. Your initial reaction would be to sit on the sidelines and wait. However, doing so could mean missing your opportunity to get the best home at the right price.
With the Federal Reserve trying to slow inflation by multiple interest rate hikes to date, you probably think you missed your window of opportunity if you didn’t purchase earlier in 2022. However, this couldn’t be further from the truth. Right now, homes on the market are more competitively priced than they were back in the summer of 2022. Now a seller, if they want to compete, must price their home based on what the current market demonstrates, make updates versus selling “as is” in many cases and be willing to negotiate with buyers on closing cost, points or other buyer concessions. Additionally, inventory continues to be tight in Atlanta with a 2.3-month supply*, and housing prices will continue a more normal increase of four percent versus the 35 percent price increase we saw last summer. So, if you are ready to purchase a home now, it isn’t prudent to wait the market out with the hopes that you’ll get a “deal.” Home pricing isn’t predicted to decline, and you may miss the opportunity to buy that perfect home.
Yes, rates are higher now than they have been recently, but they are about average for the years since rates have been monitored. The good thing is that most experts believe that rates will tick down in 2023, creating an opportunity to refinance. How about planning to marry the house, date the interest rate? Price appreciation won’t be what it was in 2020 and 2021—a good thing since it’s not sustainable and would price home buyers out of the market. Normal appreciation is a great way to build wealth over the years.
We all know that housing costs overall are up, whether one is renting or purchasing. Consider this question: “Would I prefer to be buying my own home and gaining equity over the years, or would I rather be helping a landlord pay for his property?” If the time is right in your circumstances, buying real estate has always been beneficial over the years.
*FMLS data is for single-family detached residences through Q3 of 2022. Data is believed to be accurate by not warranted.