This past year was truly the year of the seller when it comes to the housing market. Prices were up, and buyers were competing for their perfect dream home like a scene out of The Amazing Race. This year, however, looks to be a different story.
Mortgage Rates on the Rise
With mortgage rates at historic lows at the beginning of last year, homebuyers were able to relax a bit. Not that buying a home is a relaxing venture, but lower rates meant more affordable payments for many first-time homeowners. Unfortunately, that bliss did not last.
Rates rose throughout the year, and in late December, the Federal Reserve hiked benchmark federal funds rate by 25 points, saying they planned to raise the rate again in 2019. Realtor.com estimates the rate for a 30-year mortgage will hit 5.5% by the end of the year. Zillow.com estimates it could soar as high as 5.8%. However, with the U.S. Federal government shutdown factoring into predictions now, investors are moving towards bonds, which is pushing mortgage rates down. Where the trend goes from here is questionable, but once the government resumes business as usual, it’s likely to rise again.
While mortgage rates are on the rise, housing inventory is falling. With a decrease in the available homes for purchase, many home-buyers can expect to be outbid and left standing on the sidewalk staring forlornly as someone else moves into their dream home. To make matters worse, home prices are still climbing.
Cheryl Young, a senior economist with Trulia.com, stated, “We don’t see a big infusion of supply coming on anytime soon, and because those prices are still increasing, and they’re outpacing wage growth, affordability is actually getting worse.”
The housing market is stronger in some states than others, and those statistics change every year. States with a demand for mortgages, where the market is performing well include:
Millennials are shifting into family mode, so the suburbs of these states (and others) may begin to see a rise in first-time and older Millennial buyers. Experts predict suburbs will begin to look like miniature cities as the influx of new families spreads across the country. However this all plays out, 2019 is looking to be a tumultuous year in the U.S. housing market.
In India, owning a home gives people a sense of pride, security and stability. A host of first-time homebuyer benefits and a slew of economic policies are making house ownership accessible to all. An increasing number of people today are looking to buy their dream homes. The current Indian real estate market is flourishing, making it the best time to invest in the real estate industry.
If you are looking for real estate in Pune, Kolte Patil Three Jewels is an integrated township spanning 35 acres offering well-spaced apartments amidst wide expanses of nature.
The home buying process can seem confusing if you are a first-time homebuyer. This article presents the ultimate real estate guide to help you understand the various steps involved in a home buying process:
Assess your needs
Homebuyers have multiple choices available to choose from — apartments and flats to villas and villaments. You can assess your needs by asking questions such as what kinds of accommodation would suit your family size. Does it have all the amenities you are looking for? Is it something you can accommodate in the current budget?
Check your credit score
Most first-time homebuyers opt for a home loan as funding a new home entirely from one’s savings can become burdensome. To know your status of being approved for a home loan, you may want to check your CIBIL score. A low CIBIL score could mar one’s chances to obtain credit.
Check the builder’s credibility
Once you have finalised the location and the type of residential building, look at projects managed by reputed builders in the area. Read more about their past projects, whether they complete housing plans on time, quality of construction, etc. before finalising on a property. You can also read homebuyers’ reviews that have purchased properties from a particular builder.
This is a three-way contract between the bank, builder and you to be signed when booking a house. This contract is finalised with a token fee that seals the agreement. Ensure you read all the terms, conditions and understand them well. You could also seek the services of a property lawyer to help you understand the clauses.
Approvals and licenses
You can save yourself from unwanted hassles by ensuring a builder has the necessary legal approvals and certifications in place. Some documents that to need to be checked include title deeds, RERA certificate, encumbrance certificate, NOC by relevant bodies, environmental clearances and so on.
If you are looking for financial assistance to purchase a property in Pune, you can avail a home loan from Bajaj Finserv Homes & Loans with credit up to Rs. 3.5 crore. Avail an easy loan with minimal documentation and features like property search assistance, flexible tenors, and easy part-prepayment and foreclosure facility.
If you are a first-time homebuyer, you may take the help of the above real estate guide to walk you through the critical areas of the home buying process. Investing in real estate is a huge commitment. So, it is essential to assess your needs before you take the plunge. For example, if you are a family of four with kids, a property with necessary amenities like schools and nearby kids’ play areas can be an advantage. It is equally vital to check your CIBIL score to ensure you qualify for a home loan. Once you have finalised the location and the property type, seek top builders offering projects in the area and verify their background. Book the property after ensuring all legal documentation is in place and you have fully understood the terms and conditions of the builder-buyer agreement.
Three Jewels in Pune is a magnificent township located at Kondhwa. The housing project offers 1 BHK, 2 BHK and 3 BHK flats that are well-designed, spacious and cater to people of different income groups. Three Jewels provides its residents with excellent amenities that include a swimming pool, flower garden, library, event space, multipurpose courts, conference room, reserved parking, kids play area, gymnasium, indoor games room and much more.
Get the best financial assistance to buy a property in Pune, by availing a home loan from Bajaj Finserv Homes & Loans. Avail an easy loan up to Rs. 3.5 crore with minimal documentation and other features such as property assistance, easy tenors, and simple foreclosure and part-prepayment facility.