As we come to the close of an eventful summer, August brought many changes to the housing market. What might be true in one part of the country may not be reflected in other areas. The market is starting to make a divide in certain areas.
Mortgage Rates
Although the temperatures continued to rise in August, mortgage rates fell to 6.35% for a 30-year mortgage, and the 15-year rate averaged 5.51%. These lowering mortgage rates are expected to continue for the next few weeks. This could cause potential homebuyers to stall their purchases until the rates get even lower. The rates are at their lowest for 2024, but it’s still a bit higher than a year ago.
Home Inventory
The home inventory for August changes depending on where you look in the country. Areas with more construction, like the southeastern states, saw many homes added in August. Other areas, like California and other West Coast states that have slowed construction, didn’t have as many homes added to the market. This means competition in these areas could cause the prices to go up.
Home Prices
While there hasn’t been much of a change in home prices since July, there has been a gradual uptick in the average cost, around 0.2%. With mortgage rates declining but home prices staying high, mortgage payments are still expected to be some of the highest in history. In some areas, like Salt Lake City, homes sell above the asking price due to competition and fewer home supply options. Other places with an influx of new homes saw home prices stay where they were or even drop.
What 55+ Homebuyers Need to Know
Down Payment
Average homebuyers aren’t taking advantage of loans that offer lower down payment percentages like they were a year ago. The down payment for homes has jumped to an average of $67,500, making it 15% more than last year’s average. This means potential homebuyers should plan for a 20% to 25% down payment on any mortgage loan over the next few months.
Credit Score
Inquiries have been a hot topic for credit scores. Every time you apply for credit, your credit report is pulled, and a hard inquiry is posted on your report. Unless you have a pre-approved financing letter from your bank, your credit may be pulled multiple times when trying to get a new car or utility vehicle. Any new credit card you apply for will get one hard credit inquiry. Remember that these take two years to fall off your credit report, no matter which bureau was used.
Assistance for 55+ Homebuyers
If you’re in the 55+ homebuyers group, there are some things you need to know to prepare for this process and ensure you’re getting the best deal available.
Comparing a 55+ Community to Regular Neighborhoods
Some parts of the country are popular among 55+ homebuyers due to favorable weather and local attractions. If you decide to relocate to one of these areas, keep in mind that there are differences between regular neighborhoods and 55+ communities.
- Resident age restirctions
- Low-maintenance lifestyle
- 55+ home design
- Prime locations
Resident Age Restirctions
In a 55+ community, many full-time residents will be at least 55+. This doesn’t mean you can’t have younger visitors, but ir provides an area that’s quieter and targeted to your needs. Regular neighborhoods will be more family-friendly, targeting children and utilizing community spaces for their needs.
Low-Maintenance Lifestyle
In 55+ communities, the homeowners’ association (HOA) usually ensures the maintenance of lawns and amenities. Regular neighborhoods may offer this, but many instead leave the maintenance to the homeowner. This is something to consider when seeking out your next neighborhood.
55+ Home Design
Another difference between 55+ communities and regular neighborhoods could also be the style of home. A 55+ community will offer homes like bungalows or condos, which are smaller and easier to manage. In regular neighborhoods, you could find smaller homes or a very large home that requires lots of regular cleaning.
Prime Locations
Most 55+ communities are built near medical facities, shopping areas, and dining options. If you purchase a home in a regular neighborhood or a rural area, you may have to drive a longer distance to get what you need regularly.
State Grants
Before you purchase your next home, make sure you check that state to see if there are grants or loans available for 55+ residents. You will have to see if you’re eligible as there are income requirements and, for some, home-type requirements. Any state Housing and Urban Development website will have this information readily available.
Find More Information With 55places.com
If you need additional resources, contact us today at 55places.com. Let us help you with your homebuying journey!
