Are you planning to buy a home in Seaford? If so, you will certainly want to be prepared. And, the best way to do so is buy keeping yourself up-to-date with all of the current real estate trends for this year of 2021!
Last week, we discussed how the real estate market was low on inventory due to the unsuccessful fullness of last year, and how it has impacted the current housing market. This week, for part two, we will be discussing how the prices of homes are rising, and how it will be affecting our current housing market this year.
So, if you are all set to discover some great insight, described by Massapequa real estate agents here at Kim Holland Homes, be sure to continue reading:
- Prices of Homes Are on the Rise. People selling their homes should be quite happy, as in the beginning of 2021, it is said that existing home prices grew by 15% compared to the previous year, rising to a national median of well over $300,000. In fact, this marks more than one hundred months straight of year-over-year price gains! But, what does this mean for people who are to buy a home in Seaford?
- What Do Higher Prices Mean? If you are preparing to purchase a home in this expensive market, you will want to determine how much you can actually afford. You will have to calculate the price based off of your income, to ensure that your monthly payment can complement your budget, making it so that you are comfortable with the outcome. Here are some tips to help you gain confidence with your price-point:
- Limit Your House Payment. You will want to limit your house payment to no more than 25% of your monthly take-home pay. Therefore, you will want to create a budget! When developing yours, you will want to remember that payments such as principal, interest, property taxes, homeowner’s insurance, homeowner’s association fees (HOA), and possibly even private mortgage insurance (if your down payment is lower than 20%), should comprise it. By creating a budget and sticking to it, you can ensure that you are comfortable with your payments.
- Save for a Down Payment. It is best to have a down payment of at least 5% to 20%. In fact, a 20% or more down payment will help you avoid PMI, which is an extra fee added to your mortgage for your lender, which would occur if you were to not make your payments. In addition, know that anything less than a 10% down payment will present you with a great deal of extra interest and fees, which certainly isn’t ideal. The higher the Down Payment the better the terms to the seller however spending cash with low interest rates is not ideal for you.
- Select a 15-Year Fixed-Rate Mortgage. There are a few mortgage options that you could choose from. However, a 15-year fixed-rate mortgage would be best, as it is the lowest cost home loan. Other popular mortgages are 30-year and more common.
Being prepared to purchase a home is certainly of importance! These are just a few tips to get you headed in the right direction.
So, if you are ready to begin your own real estate journey with a real estate agent in Massapequa, New York, please take a moment to contact us here Kim Holland Homes, as we would be excited with the opportunity to join you! Also, be sure to check back next week for part three of our real estate trends articles.