While the pandemic-fueled home-buying frenzy might be over, home buyers are still faced with a rough process this spring due to affordability and low inventory, writes Veronica Dagher for The Wall Street Journal.

According to the National Association of Realtors, the median single-family existing-home price increased by 4 percent last year to $378,700.

Mortgage rates are currently above 6 percent, and more rate increases are expected. Meanwhile, inventory levels remain on the low side with around 70 percent of homeowners currently having a locked-in lower mortgage rate.

But hopeful home buyers are still entering a more favorable market where bidding wars are significantly less common, and homes stay listed longer. Competition has decreased as well as investors are not buying as many homes as they were before.

To improve their chances, buyers should consider making reasonable concessions. The time of waiving home inspections has gone, but buyers should still find out the pain points of the seller and how to best address them.

And while price is normally top of the list, there are other ways to make an offer more attractive. For example, if a seller has an open renovation permit on the home, the buyer could offer to finish the job.

Another good move is to line up financing, as cash offers and strong financing still often win out over higher offers. The aim should be a downpayment of 20 percent.

Buyers should also look at older listings for lower prices. A house that has been on the market for 60 days will usually sell for a discount of 10 percent.

Frederick Hubler, CEO and Chief Wealth Strategist for Creative Capital Wealth Management Group adds house hacking to the list. According to Hubler, “we know of many successful real estate investors start by hacking their own house.”

“House hacking,” according to Hubler, “is a term used to describe a real estate investment strategy where a homeowner rents out part of their home in order to generate rental income and offset their living expenses. Essentially, the homeowner lives in one part of the property (such as a room, basement or separate unit) while renting out another part of the property to tenants.”

“House hacking,” Hubler add, “could help someone afford a home that otherwise may be unaffordable in today’s environment.”

Privately held properties are another option. Some home-buying companies have hundreds of homes and may be willing to negotiate just to get them off their books.

Read more about the housing market in The Wall Street Journal.

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Open House – Creative Capital Wealth Management Group – RSVP Today

The first quarter of a new year offers an opportunity to evaluate how world events, politics and trends might influence and shape economic developments across the Philadelphia region and the United States.

With inflation here to stay and whispers of a global recession looming, now is the time to arm yourself with the information you need to ensure a successful 2023 for you and your business.

At 4:00 PM on the March 22, 2023, Fred Hubler, founder and Chief Wealth Strategist at Creative Capital Wealth Management Group and Greg Care, partner in the Limerick office of Maillie LLP, will share their perspective on global, national, state, and local economic trends and answer your questions about how IRS changes made in 2022 might impact your tax return in 2023.

Attendance is limited to 25 readers of the weekly Wiser Wealth column of BUCKSCO Today.

Reserve a ticket on EventBrite today