Market Trends for First-Time Home Buyers -Real Estate

The real estate investment market is ever-changing, which can be daunting for first-time home buyers who are trying to navigate the waters. But never fear—we’re here to give you a brief overview of the current trends in the market so that you can make an informed decision about when (and if) to buy your first home. 

Interest Rates Are Rising

In recent months, we’ve seen a steady increase in interest rates. While this isn’t necessarily a bad thing, it does mean that now might not be the best time to buy if you’re not in a rush. Interest rates are still relatively low compared to historical norms, but they are expected to continue to rise in 2019. If you have your heart set on buying a home this year, start shopping around and getting pre-approved for a mortgage now. That way, you can lock in a lower interest rate before they go up any further. 

Home Prices Are Also Rising…But Not as Quickly as They Were

The good news is that even though home prices are still on the rise, the rate at which they’re increasing has begun to slow down. In some markets, prices have actually begun to level off or even decrease slightly. This is good news for first-time buyers who may have been priced out of the market in recent years. If you’ve been waiting to buy because you thought prices were too high, now might be a good time to take another look. 

There Is More Inventory Than There Has Been in Years—but It’s Still Low Compared to the Demand

Thanks to rising interest rates and home prices, we’ve seen more sellers than usual put their homes on the market in recent months. This has led to a small increase in inventory levels nationwide. However, even with this increase, inventory levels are still well below historical norms—meaning there are still more buyers than there are homes for sale. This is especially true in hot markets like Seattle, San Francisco, and Denver. If you’re looking to buy in one of these competitive markets, be prepared to move quickly when you find a home you love—there’s a good chance someone else will snap it up if you don’t act fast. 

The bottom line is that now is still a good time to buy a home—but only if you’re prepared for rising interest rates and competition from other buyers. Start shopping around now so you can get pre-approved for a mortgage and lock in a low-interest rate before they go up any further. And if you’re looking to buy in a competitive market, be prepared to move fast when you find a home you love—inventory levels may be rising, but they’re still well below historical norms.