In most real estate markets across the country, little inventory, great demand, rising prices, and low loan rates are all present. Competing all-cash offers and bidding wars have become regular in today’s market. It’s hard to tell if now is the perfect time to buy because of that strange mix. You should buy a house when it makes financial sense for you. Now that the Raymore real estate market is as insane as it is let’s examine whether you should buy now or hold off.
Real Estate Market in Raymore, Missouri
With this information, it’s easier to determine whether or not you should buy or wait in the present real estate market. As for the Raymore real estate market and most others, here’s what you’ll find:
An Imbalance Between Supply and Demand
Due to a lack of homes on the market, there is a lot of competition for the few available properties. This has sparked bidding wars and all-cash proposals because of diminishing supply.
People are rushing to acquire properties that don’t exactly fit their needs and desires because of the current market conditions. Because of the tight supply, strong demand, and fierce competition, it’s vital to have the help of a local real estate agent to prevent making a mistake like this. Call (816) 695-7352 to learn more about how a Raymore can benefit you.
Real Estate Investors Buying Single Family Homes
Investors are snapping up properties around the country because of low mortgage interest rates, further depleting the already limited supply.
Only a handful of homes remain for sale, and the buyers aren’t typically giddy first-time homebuyers. When bidding battles for rental properties, large-scale speculators have been snatching up homes across America by providing cash and skipping the due diligence process. A $50 billion private equity firm is sometimes involved. It’s not uncommon for companies to purchase homes below market value to resell them for thousands of dollars more than they paid for them.
Rates Are Increasing
Home prices are growing as the availability of properties falls (which is basic supply and demand at work). Selling a home for more than the asking price is not unheard of.
Thus, even while mortgage rates are at historically low levels, the high cost of homes negates any benefit that may have been gained as a result.
How to Decide If Now Is the Time to Buy
Raymore’s housing market isn’t as bad as it appears right now. When all the parts are in place, it’s a fantastic time to buy gifts for many individuals. If you see these signals, it’s time to buy. When you have the money, you should make a purchase.
Income Success
To buy a house, you need to be financially secure. An indication that you’re ready to buy a home is having a consistent source of income for at least a few years. You want to ensure you have steady work amid a pandemic like COVID-19. In the present moment, that is a major deal.
To make sure you have enough money coming in to support the cost of a mortgage, lenders look for a continuous history of employment. Most lenders require your W-2s from the past two years, and some will even ask for pay stubs right up until the closing.
Pay Down Your Debt
If you have a high DTI, your monthly mortgage payments may be out of reach, regardless of how much money you make or what debts you currently have.
Credit card debt, automobile payments, and school loans will be factored into your DTI. Most lenders prefer a debt-to-income ratio (DTI) of less than 43 per cent. This is an excellent moment to buy if that’s where you are right now.
Down Payment Savings
If you have enough money saved up to meet all of the upfront costs of purchasing a property, including the down payment and closing charges, you should purchase immediately.
A down payment might range from 3 percent to 20 percent of the home’s purchase price, depending on the type of mortgage you choose. “Closing fees normally account for an additional 2-5 per cent of the buying price of a home.” To learn more about the Raymore real estate market, Dan Edson, Raymore real estate agent at (816) 695-7352.
It’s Important to Have an Excellent Credit Rating
Mortgage rates and conditions will be lower if you have an excellent credit score. You’ll need a higher score today than you did before.
” Even so, if you have a credit score in that ballpark, it’s probably a good idea to buy today. It is up to the individual lenders to apply their credit scoring models to assess your risk as a borrower. A good credit score before the pandemic was in the 600s or 700s. It’s now in the mid-700s and higher.”
Building the Life You Want
If you’re ready to settle down and commit to remaining in the same spot for a long time in this chaotic Raymore market, you should buy now rather than wait.
After purchasing, staying in your home for at least a few years is more financially advantageous.” If you don’t intend to live in the house for an extended period, it’s nearly impossible to earn money on it.
The Importance of Having a Representative
So, should you buy now or hold off on the current buyer’s market? In the end, it all comes down to personal preferences and economic considerations. Personal circumstances can make today a wonderful time to buy, however. Contact us today at (816) 695-7352 if you’re ready to buy a home in Raymore and looking for a real estate agent to help you navigate the market.