In "The Wizard of Oz," young Dorothy proclaims that "There's no place like home" as she clicks the heels of her ruby slippers three times. In reality, home is where you hang your hat, and most of all, it's your special place. A lot has changed since the global pandemic struck more than three years ago, and there are housing trends that experts are keeping their eyes on, and you should know about them, too.
Spring Is the Season to Check Out Demand
There's positive news on the housing landscape as real estate agents report a surge in springtime activity. Market movement is showing an increase in demand, and mortgage rates are slowly trending lower making homes more affordable to buyers. New home construction is on the rise, and now, is the time to start looking.
Sensible advice from housing experts recommend setting your budget early and sticking to that amount. Another aspect is understanding the local real estate market and what's happening there as far as new developments opening in your area, etc. Then there's patience. Never rush into a purchase. Take your time; your ideal home is waiting for you. Remember that homes are on the market for an average of 75 days.
Renters Have Options in Finding Rentals
The United States Census Bureau has interesting data about renters on the hunt for a home, and the news remains encouraging. More than half or 58.5% who moved between 2019 and 2021 found a new place to live in less than a month. So, how did they find a place to live so quickly?
Research recently released from the 2021 American Housing Survey (AHS) shows that renters secured housing in primarily two ways. They either searched for housing via internet sites, including Craig's List, Zillow, apartment.com or realtor.com (46.0%) and by word of mouth (39.1%).
Affordable Housing Remains a Challenge
Every state across the country has communities with critical housing needs, and it's a different scenario for each. You can research online at the National Low-Income Housing Coalition to see how your area is faring in terms of existing federally assisted homes and housing resources. The organization's mission includes expanding the supply of low-income housing and establishing housing stability.
The Govt. Can Help First-Time Home Buyers
Maybe you want to stop renting and start owning sooner, and there are several ways to attain the American dream through first-time home buyer programs, grants and mortgages. The latest trends indicate that there are six first-time home buyer mortgage programs, each backed by the U.S. government. You can find plenty of information online describing each program, grant and mortgage in depth and how it may pertain to your needs.
- 1. The FHFA First-Time Home Buyer Mortgage Rate Discount
- 2. HomeReady
- 3. Home Possible
- 4. Conventional 97
- 5. FHA Mortgage
- 6. USDA Mortgage
Congress Debuted First-Time Home Buyer Grants
These popular home buyer grants may be available to you, and Congress introduced them in its last session.
- 1. The National Home Buyers Fund
- 2. Forgivable Mortgages
- 3. Discounted Homes from HUD
- 4. Closing Cost Assistance Funds For First-Time Buyers Programs For First-Time
- 5. Down Payment Assistant Programs (DPA)
- 6. Down Payment Loans
- 7. Deferred Mortgages
Congress Has More Action to Take
Lawmakers on Capitol Hill are also busy getting ready to tackle two pieces of legislation. One concerns a tax credit and the other, a cash grant.
The 2023 First-Time Home Buyer Tax Credit Act would refund up to $15,000 in tax liability to first-time home buyers retroactively to December 31, 2020.
The Downpayment Toward Equity Act has yet to be passed into law, but it is a home buyer grant that would award up to $20,000 cash to first-generation home buyers and an additional $5,000 to buyers from socially or economically disadvantaged backgrounds.
Another congressional program is The DASH Act, which features a $15,000 first-time home buyer tax credit for low and moderate-income Americans. That bill also has yet to pass.
There should be decent, affordable housing for all. It's not simple to predict the future of the homebuying market, but the latest trends show encouraging news and hopefully, for you, a new place to hang your hat.
