I gave an interview on “Daytime” to discuss what’s happening in the market.
Buying a home is a major investment, and there are plenty of reasons why people feel scared to take the plunge into our current market. I recently appeared on “Daytime” to discuss a few ways that potential buyers can relieve their fears, so I’d like to share a part of that interview today.
Home prices and interest rates continue to rise, which is pushing buyers out of the market. Are we reaching a tipping point?
Across the nation, we are seeing some pockets of weaknesses, but we’re not seeing it here in Florida, let alone Tampa. At the beginning of the year, Tampa was projected to have the most appreciation of any market, and so far, that’s held true. The supply level has come down, so even with some buyers leaving the market, home prices are still increasing.
Do you recommend that people proceed with buying a home even though rates are higher?
Yes! If you look back on the history of the market, you’ll see that interest rates are still historically low. Today, you can get a 5% rate for a 30-year mortgage. Adjustable-rate mortgages can have rates of around 4% to 4.25%. By working with a professional agent and a loan officer, you can find the right option for your situation.
How do you know which loan is right for you?
You definitely have to do your homework and speak with the right people. If you tell me that you’re looking to live in the home you’re buying for five years and you want some buffer, I’ll tell you that you should get at least a seven- or 10-year rate lock. Be aware that there are other options besides a 30-year mortgage; some programs even offer 40-year loans now.
There are many ways to make homes more affordable for people. Supply is likely going to be constrained for years to come; builders simply aren’t constructing enough new homes. Interest rates increasing won’t cause a downturn in the market.
What advice do you have for first-time buyers who are discouraged by limited supply?
To stay competitive, first-time buyers need to come to the market prepared. They need to have an appropriate amount of savings so that they can pay for closing costs and potentially an appraisal gap. That, along with hiring an experienced agent to guide them, will help them make stronger offers and increase their chances of getting their offers accepted.
What success stories have you seen?
In the last month, we put two $260,000 buyers under contract, which is really tough. They were both first-time homebuyers, but they were able to beat out multiple other offers and succeed in the end. Relationships matter in real estate, and Team Borham is one of the top teams in Tampa Bay. We have relationships with hundreds of listing agents, so when someone sees an offer from us come in, they’re typically excited to work with us.
If you have any questions about what’s happening in today’s real estate market, don’t hesitate to give us a call or send us an email. We’d love to help you.