Posted in: Buying a home, Getting a mortgage

Should you buy in today's seller's market?

Buy in a sellers market

A spring seller’s market is upon us. Extremely low inventory means that sellers are benefiting from higher prices and shorter time on the market. However, potential buyers shouldn’t be discouraged; home prices and mortgage interest rates also remain low. Together, these two factors mean that it’s still a great time to buy a home – if you can find one for sale!

Home prices are low, but rising

Home prices are still 30 percent lower than 2006, but the Twin Cities metro reported the fourth largest median price increase of any metro in the nation (Kiplinger). That means today’s buyers can purchase at a low price, and expect their property to increase in value as the market recovery continues.

Record-low mortgage interest rates are low and rising slowly

While experts agree that rates won’t increase significantly this year, it’s important to remember that even a small gain in rates will impact you over the long-term. For example, a single percentage point added to a 30-year, $300,000 loan would add around $3,000 to your annual mortgage payments.

Not sold yet? (Pun intended.) Consider this: according to the National Association of REALTORS® (NAR), buying was more affordable than ever in 2012. 2013, NAR predicts, will be the third most affordable year on record. As the market continues to recover and strives for parity, we'll stop breaking records and leave today's high home affordability in the rearview mirror. Reach out today to begin your home search.

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Status Definitions

For sale: Properties which are available for showings and purchase

Active contingent: Properties which are available for showing but are under contract with another buyer

Pending: Properties which are under contract with a buyer and are no longer available for showings

Sold: Properties on which the sale has closed.

Coming soon: Properties which will be on the market soon and are not available for showings.

Contingent and Pending statuses may not be available for all listings