But, that’s not necessarily good in the long term. Mortgage rates are beginning to rise as well, which is cutting into the purchase power of potential buyers. The National Association of Realtors warned last week that “home price growth is too fast.” They say the market needs more new home construction and easier access to credit for buyers.
Another factor to consider are the changes to mortgage industry mandated by the 2010 Dodd-Frank Act. Nearly a dozen new regulations totaling almost 4,000 pages are scheduled to take effect at the beginning of next year. Among the regulations are definitions of a Qualified Mortgage and a Qualified Residential Mortgage. Writing in the Milwaukee Journal Sentinel, Wisconsin Bankers Association CEO Rose Oswald Poels says this will mean “Fewer, more difficult to obtain loans, which are more costly and statistically less risky, but also less helpful for consumers.”
And although you may feel the need to buy now before prices rise too much, many experts advise caution. Amy Hoak of The Wall Street Journal’s Market Watch offers five excellent tips for avoiding “buyer’s remorse.” She says you need to consider a home’s location and potential hidden costs. You need to confirm the house is what you really want and really need at this time. And she writes that you have to balance between a home’s cost, function and delight.
The decision to buy or wait is yours. But, don’t feel like you have to make it alone. Give me a call and I can help you put everything in perspective and help you find a home that meets your needs, fits your budget, and that will make you happy for years to come.
Ann Underwood
The Underwood Team, REALTORS®
402.643.3300 Office | 888.635.1409 eFax
Home Real Estate | Underwood Team, PC
655 South St, Seward, NE 68434 | 7211 So. 27th
St, Lincoln, NE 68512
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