If you are thinking about buying or renting to own a home this summer, then you are on the right track. Summer is the best time to buy a new home or rent-to-own a home. Before you run out and start the housing hunt right away, take a moment and understand more about the summer housing market and how you can get the best home for the best price this summer.
Prices dip in the summer months
The summer months are usually hot regarding temperature but also hot regarding the market activity. As more and more homes hit the markets in spring and summer, the resulting supply of available homes tends to drive prices down making late August a prime time to snap a great deal on a home for lower prices.
PMI rates a dropping
Private Mortgage Insurance (PMI) providers have been lowering their rates this year, and right now they are lower than they ever have been. Now is a great time to buy a home with a low down payment. If you don’t know what PMI is let us break it down briefly. PMI is the insurance you have to pay on a loan when you don’t put down the full twenty percent. These PMI payments can cost you a little bit more on your monthly mortgage payments once you’ve paid up to the twenty percent down payment. Since these rates are low right now, it’s never been a better time to buy a home
Consider older listings
More and more homes are posted every day during the spring and summer months. Just because a home has been on the market for longer than the other listings it does not mean these homes are not worth it. The home could be on the market for an extended period because the previous potential buyer pulled out of the deal. Make sure you take a look at these home before you discount them all together.
Do not discount fixer-uppers
Not all fixer-uppers are great investments. However, you should not discount them all together. There are occasions where a fixer-upper home can be a great investment opportunity. When the market is so competitive, it is important to keep an open mind about what and more importantly where you want to buy. Some flexibility on your part could result in a great windfall down the line.
Know the neighborhood
Where you buy a home is sometimes more important than the home itself. Some metro areas are being built up and renovated. In these cases buying property in the right location can result in having some incredibly valuable real estate within just a few years. Take some time to research the areas where you plan to buy and find out about it purchasing property in that area is a sound long-term investment.
On a different side, you might be more concerned about access when considering where to buy. In these cases make sure your potential shopping area is near transportation, services, restaurants, and nightlife if you want a social experience. If you are looking for something more secluded, then consider looking at more rural neighborhoods that are less likely to be developed in the future.