It’s become apparent – as America recovers from the Great Recession – the game plan has changed. Real estate trends in 2015 indicate these shifts as buyers, sellers and lenders adjust to a new “normal.”
The immediate effects of the recession were obvious. With government seeking to tighten up the industry, banks and lenders demanded higher down payments and excellent credit scores.
Not surprisingly, the times are looking good for home buyers. No longer does a buyer need a cart full of cash for a big down payment or to have a perfect credit score. With credit standards easing and down payments becoming more flexible, the market is opening up for want-to-be buyers.
Trends for homeownership today
1. One of the key real estate trends, low down payments are back, especially for the new homebuyer, with down payments as low as 3% for first-timers.
2. Not-so-perfect credit won’t mean automatic rejection. In efforts to increase home ownership, lenders are accepting lower credit scores. Without any fanfare, even subprime loans are sneaking back.
3. Self-employed folks are still going to find it hard to get a loan unless their credit score, verifiable income and cash in the bank make them a good risk.
4. So what type of loan makes sense for you? Rates are slated to increase – savvy buyers will lock in a rate now.
5. As high home prices even out, the market is stabilizing. If you like the neighborhood and love the house don’t be afraid to make a lower offer.
6. Buy a “Home” – before the great recession, buying a home was considered a golden investment. We know now that this isn’t a guarantee.
7. There’s an efficient real estate trend: Banks that used to take up to 45 days to get a loan through are getting loans done in as little as 10 to 14 days.
Nothing beats the feeling when walking in the door, that feeling you’re home, an impossible feeling to get when you are renting someone else’s property. It’s wonderful knowing that you have control over your living circumstances. Change the paint? Sure. Add a bay window? No problem! In your own home, you’ll feel more financially secure; knowing this is an asset it’s tangible.
Owning their own home is a goal of many who are financially ready. Renting eventually gets “old” and there’s that feeling of throwing money away. There’s a peace-of-mind that comes with buying a home and staying a while. Setting down roots gives stability and the emotional benefits are priceless.