Real Estatin' The Facts Market News - 9/17/2021
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Bidding wars fall to lowest level since 2020 Source: Market Watch
The frequency of bidding wars on homes has dropped to the lowest level this year — the latest sign that the housing market may be cooling and reverting back to its usual seasonal patterns. Redfin found that 58.8% of the offers on homes written by the company’s real-estate agents faced competition in August, down from 62.1% the month prior and a peak of 74.3% reached back in April. Redfin defines a bidding war as any situation where there are at least two competing bids on a home.
Budget stresses weigh on consumers Source: Qualia
Nearly a third (30%) of buyers said that, to win in a competitive offer situation, they paid more than they anticipated on their home purchase. Of those who did, 32% paid $52,000 or more over the asking price, according to the Homebuyer Sentiment Index conducted by Qualia, a digital real estate closing platform. Some buyers say they waived contingencies to gain a competitive edge. Nineteen percent of respondents said they removed inspections from the contract. The index highlighted the risks consumers may be taking when they act too quickly without understanding the home purchase process or transaction costs involved, the survey said.
The hidden costs of homeownership some first-time buyers haven’t heard of Source: Realtor.com
The price of entry to homeownership involves more than just the down payment. About 44% of homeowners said they were unaware of the other costs associated with buying a home, like home inspection, document fees, property taxes, home insurance, and title fees, according to a realtor.com® survey. About 11% of respondents also failed to factor in moving expenses. Closing costs typically range between 2% and 5% of the loan amount, financial experts say. Buyers may be able to roll some of their closing costs into the mortgage if their lender allows.
What not to do before buying a house Source: The Mortgage Reports
Home buyers can make mistakes that could put their mortgage in jeopardy leading up to closing or make them miss out altogether in homeownership.The most common mistakes buyers make include financing a car or another expensive item before closing. They may buy new furniture and appliances for their new home on credit but shouldn’t because lenders will do a final credit inquiry check before closing. If new debts were added, it could jeopardize the loan approval.
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