New homebuyers who had been toying with the idea of entering the housing market have a variety of options that are currently available when it comes to buying a home, but arguments that have been presented as of late often point out that there are both upsides and downsides to the main types of homes that are currently being sold, and for homeowners who are new to the home buying arena, caution must be taken so that there are not setbacks or potential financial problems that will arise. On Wednesday, Federal Reserve Chairman Ben Bernanke made comments about the future of housing, and mentioned of factors like unemployment and uncertainty which are still causing numerous homes to sit empty on the housing market despite the fact that there are affordable home prices and low mortgage interest rates currently available to men and women who may be looking to buy.
Also, recent decreases and some predicted future devaluation in home prices are also keeping homeowners from buying a new home, but there are areas that are seeing some stabilization in the housing market and this has led to opportunities that buyers may have due to either foreclosed homes that are sitting empty and come with a low price, or short sale opportunities that may also bring about a low overall cost to homeowners, who may be able to couple these low values with an affordable mortgage interest rate.
What homebuyers must beware of though, is there are factors related to the homes that are sitting empty on the housing market or being sold, as well as, the potential decrease in property values that may be seen in the coming months in certain areas. So, for new homebuyers, research is going to be helpful in terms of what housing prices have done in the past in the area they are looking at and what potential home values may look like in a year or more, because some buyers may enter the housing market and immediately start seeing the loss of value in their property, which according to some officials, shouldn’t be as substantial as we have seen over the past months, but could still create an underwater situation.
Also, there have been reports that foreclosed homes have been sitting on the market for months at a time, if not longer, and in some cases, this long period of homes having no inhabitants that would offer upkeep could lead to issues related to disrepair or even damage that will have to be dealt with by a new homeowner. Obviously, a homeowner could see most major damage that is done when they go to view the home, but of course there are some issues that could be unseen.
Homebuyers must also realize that there are issues related to the time it will take to process either the sale of a foreclosure or a short sale, but there are still arguments being made that homeowners are seeing a housing market which is offering incredibly affordable homes and near-record low mortgage interest rates, both of which can make for an affordable home loan experience. It goes without saying though, lenders are being more cautious in some cases and making homebuyers meet more stringent qualifications before they can purchase a home, as even though there are arguments that the housing market is offering affordable options, there are still many who simply cannot afford the obligations that come with a mortgage right now.