property market is cooling

The Hot Property Market Is Cooling. Avoid Common Pitfalls

America has seen months of increasing property prices. As new listings finally hit the market, CNBC reports that house prices are finally dropping. Many buyers will now be looking to re-enter the market and find a good deal – and for good reason. It’s always better to buy during the dip. However, those families and individuals are looking to put their money to good use, and get a house while the market is in perfect condition.

The home loan

Home loans and mortgages remain the most popular way of purchasing a property. Yahoo estimates that $1.3tn of mortgages will be issued by the end of 2021, showing the huge size of the market. With the market the size it is, there are lots of opportunities to get a good deal – but plenty of potential mistakes, too.

Homeowners and new buyers should be aware of the pitfalls of home financing. Firstly, look at wider financial trends. Low interest, high inflation? It might be time to review your home loan. Similarly, it’s important to use fair lenders that won’t burden you with fees – every last cent of the budget counts when moving home.

Prepare for maintenance

USA Today reports that nearly two-thirds of millennial homebuyers have regret over their purchase. One commonly cited reason is maintenance costs. Renting brings with it the benefit that the landlord is responsible for repairs – not so in an owned property.

Furthermore, rising material costs mean that many homeowners are paying more than they have in recent years for the same repairs. Being aware of this will help you to nip potential issues in the bud, and will also make sure you’re prepared for the monetary cost of making any changes to the bought property.

A changing economy

Many Americans are looking to change careers – that could mean you too. This is especially a factor if your line of work is experiencing change – will your salary and stability still be here several years down the line? A home is a multi-decade investment, and you should only go into it if you have a long-term career planned.

If these factors are met, and you are comfortable, then by all means go for it. The market has low interest rates, high inflation, and slowing house prices – all good factors for buyers. With new builds also ramping up, the market will turn on its head from the seller-focused one of recent times.

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