What We're Reading This Week: December 1
This week we've been reading about the rising housing prices and interest rates that the country is seeing. Here's the low-down, what it means for first-time buyers, and how to make sure you get the best deal in an increasingly difficult market.
U.S. Housing prices have exceed housing boom levels
If you're thinking that homes are getting more expensive, you're absolutely right--especially if you live in the West or the South. The Denver Business Journal reports that homes in the Denver Metro Area are increasing 9.96 percent year-over-year average, The Orlando Sentinel reports a 5.7 percent increase in the area, and the Seattle Times says it's area is topping the nation with an 11 percent increase. While that may be disappointing news for current buyers, it doesn't mean we need to be worried about an second housing bubble. The Washington Post says that this time around the increase in prices is driven more by lack of inventory than it is by speculation or easy credit like it was before the housing crisis.
Highers Prices and Rates Might Spell Bad News for Millennials
Zillow puts the average age of the first-time home buyer at 33--or the high end of the millennial generation. But mortgage rates have finally crept above 4% in some parts of the country and when you combine that with higher home prices, HousingWire fears that millennials might get priced out of the first-time buyer market.
One Realtor's Solution
Joe Manausa Real Estate, a Tallahassee-based real estate agency dispels common buyer myths on how to save money on buying a house. He does a great job helping the buyer understand how to evaluate whether or not something is actually a great deal and what tactics will help save the most money.