Why the 2013 Columbus Home Market is a Whole New Ballgame for Home Buyers - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Why the 2013 Columbus Home Market is a Whole New Ballgame for Home Buyers

2013 will not simply be a repeat of the 2012 market we saw in Columbus. If you’re thinking of buying a home this year, you’ll need to do some spring training to get into the game!

Mortgage Rates, Rules and Columbus Home Buyers

Mortgage interest rates are moving off their lows – and are expected to trend higher throughout the rest of 2013. Freddie Mac’s weekly mortgage survey shows 30-year fixed rates averaging 3.53%, and 15-year rates averaging 2.81%. Please remember that the rate you qualify for, depending on your credit score and other criteria, could be different. The financial markets also have a bearing on rates, and this is why today’s rate environment shouldn’t be taken for granted.

There are other changes that affect the cost of getting a mortgage. FHA-backed mortgages are seeing an increase in mortgage insurance premiums this year. The premium is tacked on to your monthly mortgage payment. Also new this year – is the permanent nature of the mortgage insurance which can no longer be waived after you reach a certain amount of equity – it’s with you for the life of the loan.

The Consumer Protection Act presents another new wrinkle in mortgage lending. The intent of this law is to eliminate the kind of risky mortgages that lead to the housing downturn. What it means is that complex mortgage underwriting is here to stay. Bankers must prove that borrowers have an ability to repay the debt, not only at the time of loan origination, but also through the life of the loan. This will probably hit self-employed home buyers the hardest, along with anyone with variable year-to-year income. Showing a consistent income is key.

Columbus Home Inventory Low; Buyer Expectations High

The inventory of Columbus homes for sale is at a 10-year low. There are a few reasons why: home demand is up with the slowly improving Central Ohio economy, but many homeowners are unable to sell because of little or no equity or being “upside down” – owing more than it’s currently worth. At the same time, we have fewer foreclosures coming on the market now than the all-time high during 2010.  Many distressed homes that come to market are under-priced or at today’s fair market value which is leading to multiple offers which are close to or above initial listing prices by cash buyers, fully pre-approved owner occupants and even investors.

What all of this means is – we could see a very competitive spring for first-time home buyers in Columbus! There are and will be affordable homes on the market – but to find them and successfully bid on them – you will need the expert guidance of an Exclusive Buyer’s Broker!

At Buyer’s Resource Realty Services, we exclusively represent Columbus home buyers! We give you the market advantage you need to obtain the best home at the best possible price. You can get started right away; download our free e-book for immediate access to home buying strategies!

Contact us for home buying help today!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

 

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