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Carol Eisenstein's Blog

By - Carol Eisenstein - | Agent in Livingston, NJ

First Time Home Buyer Guide for 2013

First Time Home Buyer Guide for 2013



First time home buyers in 2013 will have a couple of very positive conditions working in their favor as they prepare to embrace home ownership. Mortgage rates, which registered historic lows in 2012, are expected to stay exceedingly low in the New year if Federal Reserve Chairman Ben Benanke has his way. In addition, home prices, most industry experts and recent data confirm, have halted their decline and yet, while reassuringly on the upswing, are not shooting skywards, there will be challenges for the first time buyers. though.  these include a low inventory of homes, mortgage lending policies that are still strict and the risk that one of the most important programs for first time borrowers, FHA may get more costly.  finally there is the issue of deductibility of home mortgage interest.  Will there be changes? Possibly, but not , we are guessing any that will affect most first time buyers.

 

Even in the more troubled housing markets of the last few years, first time homebuyers have been stepping up, accounting for about one third of sales of exisiting homes.  since the number of exisiting homes being sold has been going up steadily in recent months, that means that increasing numbers of first timers have been taking the plunge.

 

First time buyers in 2013 like home buyers in general are likely to face strong competition over a decreasing number of homes available.  but more and more young families are finding the alternative, renting, less and less attractive as rents climb. the last year saw the greatest increase in over six years in Americans setting up new households and many will be looking to buy a home sooner, rather than later with conditions so favorable.

 

First timers frustrated by a light exisiting home market may want to consider a newly constructed home since builders are ramping up again.  for now builders prices are still being constrained by stingy appraisals.

 

While most new homes take four to six months to construct, buyers seeking quicker gratification may find a spec home or can seek out a home orphaned by a cancelled contract.  by all means a realtor is needs to negotiate with the builder.

 

Comments

By Sharita Hyppolite,  Wed Mar 6 2013, 16:52
Very nice post!! Very informative!! :-)

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