Thursday, May 26, 2022 / by Brian Armstrong
If you have been watching the news over the past several weeks, you have likely seen analysts discussing inflation and interest rates. Both mechanisms have a strong pull on the U.S. economy, and if you are looking to buy or sell real estate, understanding what the numbers are indicating is key. Read on as we dive into what is happening with our current economy and what impacts Vermonters (or future Vermonters) will face! Please keep in mind we are not financial advisors, and you should always speak to a finance professional before making any decisions to understand the appropriate solution(s) specific to you.
The Inflating Economy
Over the last year, we have seen a tremendous rise in inflation. Inflation, in simple terms, is a year-over-year calculation of everyday goods like food, gas, electricity, etc. In the past 12 months, we have seen a huge jump coming to a whopping 8.3% increase. With the cost of living rising across the U.S., homebuyers feel the effects in their pockets. ; ...
Wednesday, January 26, 2022 / by Brian Armstrong
We are living in a unique era of real estate history in Vermont. Covid-19 has dominated the real estate market for two years, and it continues to impact the value and supply of homes across the state. If you tried to buy a home within the last two years, you know the forces you are up against. However, there are still opportunities, and many homes are still going under contract. Uncover the factors driving market challenges for buyers, and the likelihood of it letting up in 2022.
Mortgage rates were low in 2020 and have continued to fall even lower through 2021. Record low rates have driven more buyers into the market, even though it has remained strained with inventory shortages from 2020. The pandemic has created uncertainty, but the overall interest in homeownership steadily increased as other spending decreased across the economy. With that said, indicators show that interest rates may rise from these record lows in 2022, slowing the rush, and allowin; ...
Wednesday, December 8, 2021 / by Jordan LaFond
Rooftops blanketed with snow, lights strung, and the smell of winter is in the air. The holidays are among us, leaving homebuyers thinking about the age-old question; Should I wait to buy until the spring? In this article, I will share some need-to-know tips to help you buy a home during this season. As a local Vermont Realtor, I would like to share the top 3 reasons you should NOT wait until the spring to buy!
The Market Cycles
Every year, just like the outdoor temps, the real estate market begins to heat up in the spring, and we see a lot more inventory come to market. This pace typically lasts through the summer, and as we approach the end of the fall, the market slows down, and housing inventory starts to decrease. This cyclical trend is the biggest reason why buying NOW should be a strong consideration for anyone considering making a move. Most buyers follow the same market cycle and choose to wait until spring to buy- meaning if you also wait, competition for homes wi; ...
Wednesday, November 24, 2021 / by Jordan LaFond
As you think about making a home purchase, whether it is your first home or one of many, you need to consider what type of home you can afford. Most homebuyers choose to finance a portion of their purchase since many Americans do not have the cash to buy a home outright. From market dynamics to interest rates, many factors contribute to the type of home you can finance. So, what exactly is buying power? Buying power at its roots is the available money you have each month to put toward a mortgage after your other debts have been paid off (i.e. car loans, student loans, rent, etc.) Keep in mind that your buying power focuses on more than just the sale price; you also need to factor in taxes, insurance, repairs, and other expenses related to owning a home.
Determining Your Buyer Power
Determining what you can afford from a lending perspective is based on many considerations. Gross income, debt, assets, credit score, and interest rates are the key factors your lender will look ; ...