The spring season brings a lot of renewal feelings to people as they use this time to look for a new house after being cramped up in their homes over the winter months. According to Forbes, spring is the busiest season of the year for the real estate industry, and this year might not be any different.
However, it's important for you to get on top of the real estate market this spring if you plan on purchasing a new home or your first place. Even though it's a busy season, there are still plenty of deals that you can find if you take the right approach to the market.
First, you should get preapproved before you start your house-hunting expedition. Once you know your price range, you'll be able to know what you can afford and what might be too much. Additionally, getting preapproved could help speed up the process and overall negotiation because the seller knows your already approved.
Owning still more affordable than renting
With the nation still recovering from the recession, buying a home has become more affordable in the long run for those looking to purchase instead of rent. According to Trulia's most recent Rent vs. Buy Index, purchasing a home is cheaper than renting in the nation's top 100 major metropolitan locations.
While in the past it was easier to find a great deal, the market shifted and became more competitive. According to a report from the U.S. Commerce Department, homes sales volume grew 11.6 percent month over month in December 2014 to a season adjusted yearly rate of more than 480,000, which is an additional 39,000 homes compared to the same time in 2013.
Even with the strong buying market, a 30-year fixed mortgage with a rate of 4.5 percent is 38 percent cheaper than renting options within the top 100 major metropolitan areas in the U.S., Trulia reported.
Knowing your market
One of the best ways to get a great deal is to research your market. According to Trulia, while renting is cheaper by 5 percent in Honolulu, it's 66 percent more affordable to buy in Detroit. The two markets are polar opposites, so wherever you are located, it's important to know what the market looks like to get the best deal.
Daren Blomquist, vice president of marketing for RealtyTrac, a foreclosure information company, explained the U.S. housing market has somewhat rebounded, U.S. News and World Report stated.
"In most parts of the country, the worst of the foreclosures crisis is now behind us," said Blomquist.
To get ahead this spring, talk to one of our banking experts to be put on the right track for purchasing your new home.
For more information about smart ways to manage your finances, contact Landmark Bank.
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