If you are looking for a new home, chances are you’re not finding many homes on the market. Home prices have continued to climb, month-over month, for 24 consecutive months as of March. While home sales continue to decline for the fourth consecutive month, affordability is slipping and inventory is declining – all while interest rates and housing prices rise. Although this has existed for almost three years, 2018 will be the first year we will see limited inventory, rising home prices and an increasing interest rate.
Arch Mortgage Insurance’s Housing and Mortgage Market Review* predicts this year will be one of the worst for housing affordability with a current decline of five percent. According to the report, the size of the monthly mortgage payment needed to buy a home rose nearly five percent over the past three months. The picture harshens towards year-end with affordability possibly decreasing an additional 10-15 percent.
In March 2018, hot market areas in the western United States average 20 days on the market for current homes listed for sale. The median price of homes currently listed for sale is between $375,000 (Yolo County)** to $440,000 (Solano County)**. Industry experts don’t see it getting better for buyers anytime soon so don’t wait to start the prequalification process and start your home search.
Home values are steadily on the rise, finally climbing to the point of where they were prior to the 2008 economic crash. The bigger issue for the industry is the lack of inventory to sell. Coupled with the growing concern that fewer Californians can afford to purchase the generally higher-priced homes that are on the market makes this issue poignant.
The record-breaking numbers shouldn’t discourage potential homebuyers. Even with limited inventory, rising home prices and an increasing interest rate environment (which directly impacts the long-term costs for buyers) owning a home may be right at your fingertips. Homeownership is the best way to build net worth and position yourself for future retirement. If you have considered taking action, Travis Credit Union has the tools to help you navigate the home buying process. If you are in the market for a home and can make it happen, now is the time.
We have relationships with experienced local realtors who are well known in their markets. They work with us to make your experience a positive one and share our philosophy of providing superior member service. They know how to write a contract that can get your offer noticed in a highly competitive market.
Travis offers a variety of loan programs to assist including: Conforming, Jumbo, FHA and VA loans. We offer fixed and adjustable products. We also offer “No Points No Fee” purchase loans to help reduce funds needed to close.
Travis Credit Union is fully equipped to assist you in finding the right financing for you, working with a Realtor and mortgage pre-qualifying. Apply online at traviscu.org/real-estate or call us toll-free at (888) 698-0000 to get started. We look forward to helping you reach your dream of home ownership.
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