3 Tips to Successfully Navigate the Housing Market
By Eric Fisher | Real Estate Manager NMLS# 692792 | Published April 20, 2022
Purchasing a home in today’s market can be tricky. Home prices have skyrocketed in the last year, rates are starting to increase, and available home inventory is still down. If you are thinking about buying a new home, here are some tips to consider that will help the process go more smoothly.
Let’s first talk about prices and rates. As of March 2022, home prices in Davis County are up 26.5%, and the median sales price is $530,000 with an average 7 days on market. Rates have increased from January thru April of 2022 considerably with a current average 30-year mortgage rate nearing 5%. What does all of this mean to you? If you are already a homeowner, you have gained tremendous equity in your home-this is good news! You can use this equity when selling to put a more substantial down payment on your new home. If you are a first-time home buyer, you need to explore your financing options to see what is realistic for you to afford. The data also tells us homes are being bought quick, meaning if you want to win the bid on a new home you need to be prepared to act quickly with a strong offer. Below are some tips I would offer.
Be ready to be quick in action in your home search.It is a strong “seller’s market” which means you need to know what kind of home you want and be willing to act quickly when a home comes on the market. You want to make a strong offer to beat the competition.
Know what you can afford and get pre-qualified... or better, get pre-approved.The difference between the two is big! A Pre-Approval means you have not just applied for a loan, but you have also supplied all the documentation and the lender has fully underwritten and approved you for the loan. This makes you a strong buyer giving the seller confidence things will go as planned for a quick closing.
Use a Real Estate Agent.A Real Estate Agent will not only help you narrow down what you want in a home and where to be flexible, but in this market with homes selling quick they have access to new listings immediately and can help you structure a strong offer.
I hope this information is useful in considering if you are ready to buy in 2022, and please don’t hesitate to let us know if we can help answer any questions.
Author: Eric Fisher, Real Estate Manager NMLS# 692792
Eric is the Real Estate Manager for First Community Bank Utah, Division of Glacier Bank. He has been in the mortgage industry for over 20 years and has helped hundreds of clients purchase homes- from first time homebuyers to luxury homes.