Real Estate Market Trends for First-Time Home Buyers

For many people, buying a home is the largest purchase they will ever make. It's a big decision, and one that should not be taken lightly. That's why it's important to stay up-to-date on the latest market trends before making any decisions. If you're a first-time home buyer, here are some things you should know.

Mortgage Rates Are Rising

One of the most important things to consider when buying a home is your mortgage rate. Unfortunately, rates have been on the rise in recent months and are expected to continue to increase throughout 2019. This is bad news for buyers, as it means their monthly payments will be higher. If you're planning on buying a home this year, you will need to factor this into your budget.

Home Prices Are Increasing

In addition to mortgage rates, home prices are also rising. According to The National Association of Realtors®, the median price of existing homes increased by 4.3% in 2018, and they are expected to rise by another 3.1% in 2019. This is good news for sellers but bad news for buyers who are already stretched thin by rising mortgage rates. again, if you're planning on buying a home this year, you'll need to factor this into your budget as well.

Inventory Remains Low

The number of homes for sale has been decreasing for years, and that trend is expected to continue in 2019. This low inventory results in bidding wars and higher prices, neither of which is good for buyers. However, if you're patient and willing to compromise on your wish list, you may be able to find a suitable home despite the low inventory levels.

The real estate market can be tricky to navigate, especially if you're a first time home buyer. That's why it's so important to stay up-to-date on the latest trends. Mortgage rates are on the rise, home prices are increasing, and inventory remains low. However, if you're patient and willing to compromise, you may be able to find your dream home despite these challenges. Stay positive and work with a trusted real estate agent, and you'll be sure to find the perfect place to call your own in no time!