The housing market is red hot, with homes selling quickly among multiple offers from prospective homebuyers. It’s no easy task for military homebuyers to navigate this competitive housing market alone, however with the right information and expert advice you’ll be better prepared for success.
While it may seem like a challenging time to purchase a home, there are quite a few reasons why it still might make sense for your family’s next move. You’ll first see why military homebuyers should buy a home in this current market. We’ll also share some specific tips to help you put your best foot forward.
Why Military Homebuyers Should and Can Buy a House in this Competitive Housing Market
1. There are homes for sale, more since 2019.
Total 2020 year-end sales volume ended at 5.64 million units of homes sold, the highest level since 2006 (NAR Real Estate Forecast Summit, Dec. 2020.) While this of course varies by market, this should give you hope that owning a home is possible!
2. More new homes are being built than any other year since 2006.
Despite the high cost of lumber, new home permits are up 22.5% YoY (MarketWatch Inc. Economic Report, Feb. 2021). Of course, building a home isn’t always possible for a quick military move, but if you have flexible timing for when you need to move a new construction home could be a possibility.
3. Mortgage rates are expected to remain at historic lows. 30-year fixed rate mortgages are projected at 3% in 2021 and 3.25% in 2022. (NAR Real Estate Forecast Summit, Dec. 2020). VA loans interest rates have also remained low and are currently at ~2.5%.
4. Homes are continuing to rapidly appreciate. In 2020, home prices were up 15.8% and February 2021 marked the 108th consecutive month of YoY gains in home prices. (NAR Existing Homes Sales Data, March 2021 & NAR Economists’ Outlook Blog, Feb. 2021). This makes a great case for why purchasing a home is a good investment, especially in this competitive market.
Get Pre-Approved, Not just Pre-Qualified.
As you can imagine, a pre-approval letter holds a lot more weight with sellers and might give military homebuyers an advantage in this competitive market where there are multiple offers.
Getting pre-approved will help you understand how much you may be able to spend on a home, and what your monthly mortgage payment could be based on your income, down payment, and credit score. Here’s everything you need to know on how to get pre-approved.
Do Your Research!
Know what you’re looking for in a home. In this market you need to make fast decisions, so it is best to have a clear vision of what is important to you when purchasing a home. With your pre-approval letter, you can now narrow down options on the market or neighborhood, based on the type of home you can afford.
Trust your Real Estate Agent for Help
Your Realogy Military Rewards agent is well versed in your local market and can provide you with local knowledge including the most up-to-date listings directly from the MLS before the listings are available on other websites. Your real estate agent will also provide you with guidance on how to navigate the home-buying process and how to submit an attractive offer in this competitive housing market. Here are the ways a trusted real estate agent can help a military homebuyer:
- In today’s extremely competitive and low-inventory environment, agents are an asset to help buyers find inventory and make a winning offer.
- 88% of homebuyers said they used a real estate agent as an information source during their home search. That number is up to 91% for younger millennial buyers ages 22 -30 (NAR).
- According to NAR, real estate professionals help buyers find the right home, negotiate terms of sale, and help with price negotiations.
- The real estate market is big, but the transaction is hyper-local.
- Real estate agents have a nuanced understanding of the intangible parts of the process: the neighborhood, the local community, the commute experience, and the nearby restaurants…
- It’s also very complicated. Real estate agents offer local expertise and shepherd many moving parts and navigate obstacles along the way.
We’re Ready When You Are
Realogy Military Rewards can assist you with your entire home selling experience and was created specifically to help support military homebuyers on their real estate journey. You can earn $350-$7,500 in cash back after closing and get local community insights from military and veteran families at PCSgrades.
When you’re ready to get started on your homebuying journey, please call 1-800-752-3642 to speak with a Realogy Military Rewards Advocate or visit Realogy Military Rewards today and hit “Sign Up”.