In summers real estate business becomes a hot market. Homebuyers will face a tough task this summer in finding a home due to record low inventory, rising prices, and bidding wars. Based on our listing data, the median home price rose to $299,000 in June, setting records as the inventory of active listings continues to decrease year over year and the average days on market fell to 54, below average. Many people are familiar with the news of a tight housing market. Our spring survey of active buyers found that 40% of buyers are actively searching for homes for at least seven months. Another 34% have been looking for homes for between four to six months. Here are two things you should consider when you decide if it's time to purchase a home.
First, ensure you have enough money saved to pay a down payment. Although it is believed that you must put 20% down to get a mortgage, this doesn't necessarily apply. You can explore different options to find the one that suits your needs and budget. You will find your monthly costs to be more affordable if you put down a higher down payment. A smaller down payment can get you a higher monthly payment. To find the right option for you, analyze your budget and lifestyle.
Secondly, a reserve fund is essential to cover the maintenance cost of the house. This is perhaps the most important point that needs to be considered while renting out your property. Its landlord’s responsibility to fix broken wardrobes or pantries. The burden of homeownership is yours, and it can be costly. This stress is greatly reduced by having some savings. So, make sure to have enough money in your pocket to bear the wear and tear cost.