The Solution to a Low Inventory Market just might be
"Buying a New Home"
Buying a new home might be easier than buying a resale, as short sale listings have increased, because banks are no longer quick to foreclose, but instead allowing the homeowner to stop foreclosure via a short sale.
Home buyers are getting discouraged from the long wait of getting offers accepted on a short sale listing and investors have begun focusing on lower priced inventory homes, making it tougher for owner occupants. This is causing stiff competition in the housing market for home buyers in the median to lower priced "homes for sale" range. According to realtor.com, "finding a home in a low-inventory-market" has become challenging.
What's the solution? The new housing market is now
prime for the consumer in the market for a new home or for the "first-time home buyer. Banks have begun to relax the qualifications for a mortgage; Fannie Mae has reduced their conventional mortgage program to 3% down forfirst time home buyers and builders are offering ridiculous specials on standing inventory of new new homes.
Buying a new home may not be in your budget, or is it? When factoring in the cost of repairs or renovations on an "as is" or budgeting for unforeseen repairs of an older home - investing in a new home and taking advantage of builder's specials may be a smarter move. A good loan officer will ensure that the DTI's (debt to income) ratio will not be a factor. All mortgage programs have a debt-to-income limit, with FHA having the highest.
Before you begin your search for your new home, don't forget the important steps to buying a home.
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