What First Time Homebuyers Need to Know

The real estate market is in an interesting place from where it was this time last year and even more so than it was two years ago. Many homebuyers can feel defeated, thinking that the days of incredibly low interest rates are gone for good. While we have no crystal ball, it may be some time before interest rates fall to the epic lows we saw a few years back, if ever.

In the meantime, the market itself continues to shape up in interesting ways. The data tells us that we are in for a cooler spring market, which means that supply and demand are below the watermarks we’re used to seeing. There is still plenty of activity, however. While many folks are looking to hold on to their properties and the low rates they secured a few years back, others simply need to move on with their lives and list their homes.

For first time homebuyers, there are opportunities out there, but many are hesitant. Indeed, there is a lot to consider when purchasing a home, including job stability, finding the right home, and the correct mortgage.

Interest Rates

As rates teeter between 5.5% and 6% as of the writing of this blog, folks should take stock in the fact that this is still a low rate historically. Keep in mind that rates fluctuate. By purchasing a mortgage now, you can lock in your rate with a fixed loan. This means it stays the same even if rates climb higher. At the same time, any significant decrease in rates means it may make sense to refinance, taking advantage of those low rates once they arrive.

Home Values

While you are debating your first home purchase, know this: Home values, especially in the Bucks County area, are going up. When it comes to real estate, time is typically your friend. The sooner you can purchase a home, the better in most instances.

If you are worried about the economy, you’re not alone. Experts are fairly split on whether or not there will be a downturn. One thing there is general consensus on is that we are nowhere near the issues that plagued the housing market in 2008 and home prices are not hyper inflated like they were around that same time period.

Again, we can’t see the future and it is ultimately up to you and the financial experts you enlist to determine whether or not buying a home is right for you.

Lending Programs

There are many programs out there for first time homebuyers. Depending on your circumstances and where you live, you can find low rate and low down payment options. You can also find programs that may help to reduce closing costs.

All of these programs are designed to assist first time homebuyers get into a home. The US Department of Housing and Urban Development is a good place to start your research. You can search programs by state/county on their website here.

Local Professionals

Local professionals can offer first time homebuyers invaluable guidance. Their understanding of the local market and of their industry can help you decide if now is the right time to buy based on your situation. By having the right professionals in place now, you will be that much more prepared to put in an offer on a property should the right situation pop up.

Principle Abstract and Settlement Service works with some of the most highly regarded professionals in Southeastern, PA, and have helped hundreds of first time homebuyers accomplish their goal of buying property. If you are considering purchasing a home in 2023 and unsure where to start? Give our office a call and we will be happy to explain our services and refer you to local professionals who are best suited to serve you.