Americans are waiting longer, as the avg first-time buyer age is now 35, ↑ from 29 in 1981.
Established buyers navigate challenges in a low-inventory environment, preferring townhomes and condos.
Building up finances takes time in a competitive market with delayed entry for younger buyers.
Hire a Skilled Agent: Select a trustworthy agent to guide you through negotiations and options.
Financial Preparation is Key: Save 3-5% of your home's price for unforeseen costs.
Get Preapproved for a Mortgage: Understand your budget and show sellers your seriousness.
Mortgage rates have fallen but are still high, not enough to lower home prices. Capital Economics predicts a 5% increase in home prices this year due to tight supply and increased demand. Affordability may improve as mortgage payments decrease, but supply will remain low. Existing home sales are expected to increase, but new home sales and single-family home starts will still be below previous levels.
Consider your urgency: urgent situations (foreclosure, relocation) require quicker home-selling strategies, especially with agent assistance.
Establish an optimal price with agent assistance to expedite sales, enticing buyers and boosting activity.
The choice between a fixed-rate and adjustable-rate mortgage is important due to its long-term impact on repayment costs. Fixed-rate mortgages offer payment certainty, while adjustable rates start lower and can be appealing in a high-rate environment. However, they can lead to higher payments after the initial fixed period. It's crucial to understand the potential risks and benefits of each option before making a decision.
A 5-year fixed mortgage offers stability and predictability for homebuyers. It locks in the interest rate for five years, providing a sense of security. The advantages include stable budgeting, lower short-term rates, and protection against rate increases. However, there are also disadvantages such as potential higher rates on renewal, penalties for early repayment, and missed opportunities for lower rates. Deciding on a 5-year fixed mortgage depends on factors like financial stability, market predictions, future plans, and risk tolerance. Consulting with a financial advisor is recommended.
Low inventory favors sellers, discouraging buyers amid high mortgage rates and soaring home prices.
Modest home price growth and a continued seller's market due to a new norm of higher rates in 2024 is anticipated.
Projections of 3-4% price rise face challenges with limited inventory, resulting in a 3.4-mo supply, potentially stalling sales growth.
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Georgia's affordability crisis worsens due to historic legislative reluctance for sensible housing policies.
Lawmakers are set to consider tenant protection, housing diversification, and increased affordable housing funding.
Atlanta's widening income gap and hindered residential developments stem from the ban on rent regulation.
Lawmakers must prioritize denser zoning and allocate $100 million to the Housing Trust Fund for effective housing crisis resolution.
Mortgage rates fell in late December 2023, with 30-year fixed rates in the 6% range. Although higher than 2020 and 2021 rates, they're lower than those in October and November 2023. Experts anticipate further cuts in 2024. Buyers can secure lower rates now by buying mortgage points, opting for an adjustable-rate mortgage, or improving their credit profile.
Prospective homebuyers are concerned about high mortgage rates and limited housing inventory. However, forecasts predict that interest rates will decrease in 2024, potentially leading to a recovery in home sales. To improve their chances of homeownership, individuals are advised to increase their credit score, check credit reports for accuracy, reduce debt, apply for first-time homebuyer programs, save for a down payment, and shop around for mortgage lenders. Forecasters estimate that mortgage rates will peak around 7-8% and then decrease to 5-6% by the end of 2024.
Problem:
– Georgia faces a severe housing shortage due to stagnant supply and population growth.
Traditional solutions:
– Building more site-built homes at current pace won't solve the problem.
Georgia's average home value is $319,158, with a 2.5% increase expected in 2024.
Top areas for projected home price growth in 2024 include Thomaston, Toccoa, Cedartown, and Cornelia.
The Cost of Living Index factors in:
Housing
Groceries
Utilities
Transportation
Healthcare
Taxes
Compared to the avg US cost of living, Georgia is among the low cost states.
The US Federal Reserve has decided to maintain its benchmark interest rate, but projections suggest a potential reduction of rates by approximately 75 basis points in the upcoming year. The Federal Reserve aims to balance tight monetary policy to curb inflation while safeguarding the economy. Analysts predict at least three quarter-point cuts in 2024. The decision will have an impact on financial markets, including equities, bonds, and commodities. Rising interest rates put downward pressure on bond values and can affect consumer spending and growth stocks.
Mortgage Lender Vs. Servicer: What’s The Difference?
Johns Creek
Median Household Income: $133,948
Cost of Living: 98% of US avg
Median Rent Price: $2,600/mo
Home Price-to-Income Ratio: 1.2
Avg Property Tax: $2,733
Alpharetta
Median Household Income: $133,920
Cost of Living: 98% of US avg
Median Rent Price: $2,550/mo
Home Price-to-Income Ratio: 3.5
Avg Property Tax: $2,733
Milton
Median Household Income: $136,020
Cost of Living: 98% of US avg
Median Rent Price: $2,895/mo
Home Price-to-Income Ratio: 4.1
Avg Property Tax: $2,733
Peachtree City
Median Household Income: $103,374
Cost of Living: 98% of US avg
Median Rent Price: $2,495/mo
Home Price-to-Income Ratio: 3.6
Avg Property Tax: $2,635
Peachtree City
Median Household Income: $103,374
Cost of Living: 98% of US avg
Median Rent Price: $2,495/mo
Home Price-to-Income Ratio: 3.6
Avg Property Tax: $2,635Decatur
Median Household Income: $123,617
Cost of Living: 97.6% of US avg
Median Rent Price: $1,825/mo
Home Price-to-Income Ratio: 4.7
Avg Pr
Review mortgage terms:
Understand any prepayment penalties or limitations on selling in your mortgage agreement.
Assess tax implications:
Selling within two years may result in capital gains tax; consult a tax advisor for guidance.
Understand financial costs:
Selling early incurs expenses like REALTOR® commissions and closing costs; assess the financial viability.
A normal part of the mortgage application process, conditional approval means the lender will give you a home loan, provided you address certain additional criteria. Common conditions to change …
Rents in Georgia are lower than the median rent across the US.
Overall, the median rent in the state was $1,753 in Early-Q4.
Median rent by size:
– Studio: $1,362
– 1-bed: $1,414
Obtaining a mortgage with unpaid collections can be difficult and costly, with factors like the type, age, and amount of the collection affecting eligibility. Unpaid collections can lower credit scores, increase interest rates, and limit loan options. To enhance eligibility, individuals can correct credit report errors, pay bills promptly, consider credit builder loans, and save for a larger down payment. Lenders consider credit history, debt-to-income ratio, and their policies when approving mortgages.
Bankrate is a financial advisory platform that provides accurate and unbiased information to help consumers make smart financial decisions. The platform focuses on mortgage rates, lenders, and the homebuying process. Bankrate's content is created by qualified professionals and is not influenced by advertisers. The platform also provides a historical overview of mortgage rate trends from the 1970s to the 2020s.
The Mortgage Bankers Association's latest Loan Monitoring Survey shows that the number of loans in forbearance has decreased slightly. GSE loans, Ginnie Mae loans, and portfolio loans have all seen a decline in forbearance rates. The majority of borrowers in forbearance are facing temporary hardships or are affected by COVID-19. The performance of loan workouts has been solid but declined last month. The report also mentions potential economic downturn in 2024 and signs of distress in other credit types.
In many southern and western states, it's extremely rare to find a single-family home without Homeowners associations (HOA).Homeowners may face unexpected financial burdens from property-related fees and penalties.
Unresponsive HOAs can lead to legal actions, such as putting a lien on a home and garnishing wages.
The "singles tax" refers to additional costs faced by single individuals when living alone.
A report shows that singles living alone in 1-bedroom homes can spend up to $7K more than couples splitting the cost.
To manage solo living, singles must set a budget, typically allocating 30% to 33% of their income for housing and related expenses.
