What Does the Current Housing Market Mean for Young Couples?
The current housing market is showing slow but definite signs of coming to life. It is nowhere near being as vibrant as it once was but it is definitely on the path to recovery. As people begin to buy property, they will do so warily. They will first go for low cost property and these are the properties that were foreclosed on.
Young couples are mostly first time home buyers. Many of them put off the plan to purchase a house with the economic downturn that resulted in massive job losses. A few of them might have opted for a short sale to avoid foreclosure.
The time is just right for such couples to get into the market once again. Those who invested on foreclosed properties while they were available at low rates are now eager to see returns on their investments. This means that they are willing to sell at relatively low rates as they wait for the real estate market to get better and better.
This is also the right time for young couples to buy because foreclosed property investors and also lenders are being quite fair with their lending terms. They have less stringent requirements like the amount they would want to be put down as deposit. As the market improves and there are more buyers, lenders may become more stringent about who they will lend to.
The current housing market is also favorable to young couples because they have a longer time to pay off their mortgage. This means couples can borrow with favorable terms such as a longer time to repay , lower monthly repayments and lower interest rates.
Lenders and foreclosure investors also tend to look favorably on couples compared to single parent homes where the household brings in two incomes. Chances of defaulting are lower as there would still be income coming in should there be a setback such as one partner falling ill and being unable to work or losing their source of income.
This is also a good time for young couples looking to upgrade. They should consider renting out the home they own or putting their house on the market with the view to buying a bigger or better house or one that is at a better location.
It would be a mistake and a costly one at that for young couples to hold off and not to take the plunge while the market trends are favoring them.
If you'd like to learn more about the housing market and what it takes to be a first time home buyer, download the "First Time Home Buyers Kit" at the button below. From down payments and credit scores to a glossary of industry terms, it's all in there.
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