We’ve talked about it before and you’ve noticed it – housing prices have gone up. In some of the most dramatic circumstances, places in Florida and Nevada saw a 20% increase in home values.
Fortunately the rapid increase in home prices has leveled off. Most analysts predict that home values will continue to increase, but at a much slower rate.
With all the excitement in the housing market, we’ve also seen an increase in new construction. The interesting thing that we’ve noticed, especially in the Southwestern Washington area, is that there aren’t any homes being built at the under $150,000 price point.
In fact, the inventory for homes available under $150,000 is extremely low. This makes it very difficult for people trying to get into a starter home. The limited availability and high demand for homes in this price range appears to be a problem that, for first-time homebuyers, will continue into the foreseeable future.
The best thing to do is to keep your eyes open, and be ready to make an offer. You can get prequalified now, to know what price range you can be looking for. Then the best thing to do is to keep in touch with your lender, they can help you know based on a specific home, what your payment will be and if you qualify for it. Remember this very important thing, your lender should be like a friend to you. They should be willing and happy to help you as you do your home search.