Increasing home prices have allowed current homeowners in Delaware and throughout the country to accumulate new wealth. However, for those who were looking to buy their first homes, the rapid appreciation was pricing them out of the market. Recently, increasing mortgage rates have played a key role in making homes more affordable. As market conditions cool, buyers have been able to avoid bidding wars or ask that sellers pay closing costs.
Throughout 2018, both new and existing home sales have been less robust than in previous years. While the economy is still strong, this lull could provide opportunities for buyers that hadn’t existed in the past. Although mortgage rates are now topping 5 percent in some cases, they are still low by historical standards. During the second half of 2017, interest rates were about a percentage point lower.
It is thought that if the economy remains strong, home prices may continue to appreciate. However, it is also thought that future appreciation would likely occur at a more gradual pace. Even if price appreciation is restrained in the near future, those looking to buy a home could still find themselves priced out of the market. This may be especially true in larger markets where homes have tended to increase in price the fastest.
Purchasing a residential property generally requires paying attention to a variety of different details. For instance, it is worthwhile to know whether the property has any zoning or title issues. Buyers should also know whether or not a home has any structural or other problems prior to closing on the deal. An attorney may be able to assist in ensuring that a home has been accurately represented and that there are no title or zoning problems to contend with.