Sales of new single family houses rose to around 0.8 percent to seasonally adjusted 610,000 annual rate. A dip in median price of new houses back in June, which fell 4.2 percent to $310,800 from the month of May could have possibly helped in nudging up the sales. This is definitely great news for the home buyers.
But, slower growth in construction in the past few months doesn’t help in the lingering shortage in inventory. This sidelines most buyers, particularly first timers who are not seeing their wages keeping up with the higher costs of living.
Pressure on the Buyers Make them Postpone Home ownership
Buyers are also reeling back from lack of existing houses on the market, especially the more affordable starter properties. This results to fallen sales of existing homes in June together with the rise of the national median sales price as reported by the National Association of Realtors. Once again, this makes the buyers feel paralyzed.
Cash Buyers and Low Appraisals Can Derail offers
If you are intent on buying soon, the latest news might dampen your resolve. But the truth is, this is far from being easy. There are some sellers who will only pass you by, unless you have prepared a hefty down payment, few contingencies, and strong financing that is ready to go as part of your offer.
You will also be up against the all cash offers of buyers who are trying to up the game for them to snap up the entry level houses.
But, this must never be a reason for you to give up. Take note that not every seller will have all cash or high down payment offers on hand. And even if they do, chances are they will still opt for your offer when you manage to look like a strong candidate in some other ways. Never be afraid of writing a letter to the seller where you will explain that you are looking for your dream home where you can raise your family, and his or her house is exactly what you are looking for.
A personal touch can go a long way, particularly for sellers who are more sentimental about their property.
Protect Investment at All Costs Despite Competition
Buying a house is no doubt one of the biggest financial transactions you can ever have in your life, so it makes perfect sense to protect the investment you make. It best is best that you work through the figures with your real estate agent and lender early on during the process. Look for a monthly mortgage payment that you feel comfortable with then stick to your set budget.
Proceed wisely to avoid turning your dream into a financial nightmare down the road and avoid any costly mistakes that could affect you and your whole family in the future.
Posted by Randy Blakeslee