Many reports over the recent months had anticipated that the market will undergo changes as spring approaches, but what does this exactly mean for consumers? Here are some trends that buyers and borrowers should watch out for during this season.
First, more homebuyers refinance during this time. Consumers usually look around for better home loan deals, and they benefit from the strong competition for owner-occupied customers among banks.
Second, this is the ideal time for first-time home buyers to take a leap to the market. The pause in the rapid increase of price values will pave the way for those previously priced out of the market to be able to find a home more suitable to their budget. Further, competitive interest rates and ample apartment stock are also often available during this time.
Third, the overall volume of lending is expected to be more controlled, given that banks usually tighten their serviceability requirements.
Lastly, and potentially one of the most important points for borrowers, the real estate is likely to cool. Since spring usually sees the increase in home listings, it is anticipated that there will be higher lending activity. However, it is important to note the market this year transformed from a sellers’ to a buyers’ market, which caused the weakening in values and prices in select areas.
These trends were curated by home loan lender ME.
Collections: Mortgage News
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