Now that the thaw begins in Oakland County Michigan and Spring forward is just around the corner it is important to know what the Oakland County Housing market is doing and how this can affect home sellers and home buyers in all areas of Oakland County, Michigan. The Oakland County Housing market is always in a state of change not only in Oakland County but also around the country with home prices edging upward once again, but some of the west part of the country is seeing red, in this post we will focus on our Oakland County Michigan housing market.
On Market Oakland County Housing
There are currently over 1,700 homes currently on the market in Oakland County Michigan ( according to the graph) with the average price rounding out to be approx. 466,000 which is a price increase of around .09% overall, which is a great sign for home sellers in the Oakland County Housing market this spring, but remember these numbers are always moving and days on the market had increased from around 30 up to 60 and are now beginning to head downward again. As of late last year, many felt we were leaning towards more of a buyers’ market but it seems we are seeing prices in the Oakland County Housing market starting to climb again these first couple of months. In most cases 2019 will be a better year for home buyers as inventory is increasing and rates are on hold for the meantime.
A Look Ahead in The Oakland County Housing Market
In the spring Oakland County Housing market, I see the market balancing, meaning that home sellers and home buyers will keep the market in the middle with the buyer pool being about the same but with more inventory to actually find the home they like and purchase and home sellers remaining in good shape as far as their equity is concerned. Last year in 2018 the housing market was hot in the beginning due to low rates and sellers gaining equity, but it was not enough to keep it going through late fall and December was a challenging month for our Oakland County Michigan Housing market. Many factors were in play such as; Low Inventory, Slow building and home buyers waiting for new homes to come on the market. I believe that we will see an increase in inventory and this includes new construction more choices and low rates. Unless there is a recession, hike in rates or some other factor to prevent pent up buyers from making the move this year, I believe our local Oakland County Housing market will thrive.
I have included in this post below my weekly housing market reports for you to sign up to in order for you to make the best home buying or home selling decision for yourself, and if I can help in anyway with any of your real estate needs here in Oakland County Michigan I would be delighted.
Click On Chart Graph Below and Add Any Zip Code
We are approaching the spring of 2019 and Oakland County Michigan home owners are in the process of getting their homes in tip-top shape to get them ready for the spring selling market, but last ear at this time Oakland County Michigan millennials seem to have been overlooked as important home buyers in our market. This spring it would be a major mistake to ignore them as they are ready and willing to purchase a new home as statistics show.
Millennilas Are A Force To Target
When someone uses the term “millennials,” most people don’t immediately think of financial stability or home ownership. But according to a new study, more Oakland County millennials than ever are ready, willing, and able to purchase property in today’s market including millennials in Oakland County, Michigan.
A recent study from Urban Institute, which analyzed data from the 31 largest metropolitan statistical areas, found that 19 million millennials across the US are “mortgage ready,” which is defined as being no older than 40, not already having a mortgage, and having ample credit to qualify for a traditional loan (which includes a credit score of 620 or above and no recent credit issues, like bankruptcy or major delinquencies).
Why haven’t these millennials made a move? The report cites misconceptions about down payments as a major contributing factor for mortgage-ready millennials not making the jump into homeownership. (According to a survey released by Laurel Road earlier this year, 46% of Americans were unfamiliar with alternative lending options, and many millennials aren’t aware they can leverage these alternative lending options to purchase a home with as little as 3% down.)
If you’re a mortgage-ready millennial but haven’t made a move because you’ve been struggling to save a large down payment, it’s time to start exploring alternative lending options. In today’s market, you don’t need 20% for a down payment—you might already have everything you need to purchase a home.
So you’ve decided to purchase your first home in Oakland County, Michigan. Congratulations! Purchasing a home is a huge decision, and it can be one of the most exciting and rewarding experiences of your life, but getting the down payment can be tricky and challenging.
But purchasing a home requires capital, and if your savings account is looking a little trim, it means that you will have to do some budgeting in the upcoming year to make your dream of being a homeowner a reality and having that elusive down payment.
Here are 7 budgeting tips to help you buy your first home and save for your down payment.
1. Start Tracking Everything You Spend
You will not be able to make any major changes to your budget if you don’t have a firm understanding of how your money is being spent. Tracking everything you spend for a month will show you exactly how much you’re spending, where you’re spending it, how much of your budget is going towards necessities and how much of your budget is going towards luxuries items and what could possibly be going towards your down payment for a new home.
You can keep track of all of your expenses in a spreadsheet, but a better strategy is to use an app like spending tracker like Mint or Prosper Daily (formerly BillGuard). These apps link to all of your accounts and will track and categorize your spending, making it easy to visualize where your money is going.
2. Identify Areas To Cut Back On
Once you know where your money is going, it’s time to identify the areas where you can cut back and save additional funds to put towards your down payment. Every household will be different, but when you’re saving for a house, anything that’s not a necessity (like rent or medical insurance) should be considered an area where you can cut back and start saving for your down payment.
Things like eating out, daily Starbucks and an expensive gym membership are great, but they can quickly eat into your budget. Cutting back on extra spending is a great way to build your savings and get you into your new home faster.
3. Create A Budget Which Includes Money For Your Down Payment
Creating a budget – and sticking to it – is one of the best things you can do for your finances as you’re gearing up to buy your first home and down payment. There’s nothing more frustrating than having a savings goal and consistently falling short each month because of thoughtless spending. Having a firm budget (and holding everyone in your household accountable to it) helps you stay on track towards your savings goal.
Create a budget that includes all of your set expenses (like rent), the amount of money you will put into your savings account each month and allowances for categories like food, entertainment and gas. Then, stick to the budget no matter what.
Having a set amount for how much you can spend on things will make you think twice before pulling out your wallet.
4. Get Your Credit Score Up
One of the most important factors in the home buying process is your credit score. Your credit score (and the credit score of your spouse, partner or co-buyer) will directly affect the interest rates on your mortgage, and a good credit score can save you thousands of dollars a month and assist in a lower down payment for your first home in Oakland County Michigan.
If you can, work to bring up your credit score as much as possible before you apply for your mortgage. Pay down any outstanding credit card debt, check your credit report for inconsistencies and always pay your bills on time.
5. Practice Paying Your Mortgage
When you create your budget, you should have an idea of how much you can afford to spend on your mortgage payment when you buy a home in Oakland County Michigan. But you shouldn’t wait to buy a home to start making that payment, particularly if it’s higher than what you’re currently paying in rent.
Practicing your mortgage payment will give you real life experience of what it will be like to make that payment each month. Take the difference between your current rent payment and your projected mortgage payment and immediately put it into savings at the beginning of the month.
You might find that you overshot how much you can afford and your projected mortgage payment puts you under too much financial strain. Or you might find that you actually have more wiggle room in your budget than you anticipated and can afford a higher mortgage. Either way, that’s information you want to know before you lock in a 15 or 30 year payment.
6. Pay With Cash
It’s easy to lose track of how much money you’re spending when you put everything on a debit or credit card. With just a quick swipe, you have everything you need. But paying for things in cash can make the purchase feel more real and can help you get a better handle on your spending.
At the beginning of the week, take out all of your spending money in cash. Then, make a commitment to only use the cash in your wallet to cover your expenses. If you run out of cash, that’s it.
Seeing your cash dwindle as the week goes on will help you visualize how much money you have left for the week and can help curb needless spending to allow for down payment saving.
7. Reward Yourself Regulatory
There’s no way around it – saving money for a down payment is tough. It’s important that you reward yourself for your successes and for moving towards your savings goals.
Set milestones for your savings goals (like saving $1000 or paying off an outstanding credit card balance), and treat yourself when you hit that goal. The reward will give incentive to keep going when things get challenging.
One trap you’ll want to avoid is rewarding yourself with something large, extravagant and expensive. Rewarding yourself for saving money by spending money isn’t a recipe for success! Your reward should be something low cost (or free) that still feels like an indulgence, like a picnic day at the park with your family.
With these tips, you’ll be well on your way to signing those closing papers, getting your keys and making a new life in your first Oakland County Michigan home.
I’m here to help you find the perfect Oakland County, Michigan home, once your ready and have your down payment saved. Give me a call 248-790-5594 or email me @ [email protected]
When looking to purchase a home in Oakland County, Michigan for the first time can be a difficult proposition and for for many potential buyers, one of the biggest obstacles on the road to homeownership is saving for a down payment. But thanks to a new technology trend, some savvy buyers are turning to their friends, family, and social networks for help in their home purchase these days, and it seems to be a trend that is spreading across the country. It is clear that technology and social networking can be a great way to stay tuned socially and in business, but now it has gone to a whole new level with CrowdFunding to help wanna be homebuyers reach their down payment goals by reaching out socially for assistance.
The CrowdFunding Trends
While crowdfunding has long been a popular trend, until recently it’s been mostly limited to the business world, but this is now changing to the private sector as well. According to a recent article in The Wall Street Journal, crwdfunding for home purchases is on the rise. There’s even a crowdfunding platform specifically for homeowners. HomeFundMe is the first platform specifically targeted to potential homeowners looking to fund a down payment. Potential homeowners are given 12 months to reach their down payment goal, and all funds are wired from an escrow account to the seller when buyers make their property purchase.
HomeFundMe is still new (the platform launched in October 2017), but results so far are promising; according to the WSJ article, approximately 400 potential homebuyers have used the service to help crowdfund their home purchase down payments since the launch.
If you’ve been thinking about buying a home but haven’t been able to save for a down payment, crowdfunding could be a way to make your dreams of owning a home a reality.
Buying a house is everyone’s favorite “American Dream”. People save for years, so that they can live comfortably and secure their future. Today, the real estate market is quite unpredictable. The demand is on high and the supply is less. Sellers are facing too much competition and are taking different tactics to market houses.
The current real estate trend requires you to do your homework before browsing the market. Jumping the gun will cost you extra and unbiased advice from friends and family. This might force you to take the wrong decision, which is why it is important to proceed with the home-buying process with a real estate agent by your side.
So, before buying a house, ask yourself the following three questions:
Q1. Why Have You Decided Now in Buying a House?
For a minute, set aside your finances and focus on the other reasons of why you are buying a home for sale in Oakland County, Michigan.
- You no longer feel safe in an apartment.
- The landlord is unbearable.
- Has there been a new addition to your family?
- The school in the area is not good enough for your child.
- Some of the facilities available nearby were shut down and now you are having trouble.
- Your job changed and commute is hard to get here.
Narrow down the reason behind the buy and then you will be able to evaluate its seriousness. Making a huge decision such as buying a house is not something you should do on a dime.
Q2. Is the Real Estate Market Going to Crash?
The housing market right now is buyer-friendly, which gives you the opportunity to buy a great home for sale in Oakland County, Michigan within your budget. This window is quite important and must be one of the reasons behind why you are buying a house. In 2017, the housing market went up by 5.8% from 2016. Right now, the market is stable but according to the National Association of Realtors (NAR), it will reach alarming levels by the end of this year. So, unless you want to look for change under your couch cushions, better check out the real estate market trend before buying a house.
Q3. Is the Mortgage Affordable for You?
The house-buying process can become quite confusing and difficult, if you are not working through a real estate agent. The long term cost is something that will haunt you even after years of buying the house. Even a 0.5% increase in the interest rates can set you way back on the monthly payments. This is why it is important to consult different lenders and find the perfect mortgage loan plan that you will be able to pay within 20 to 30 years and without going into debt.
Our final word of advice is that if you feel it is the right time for your family and you to buy a house then you should go for it! If you want to buy a home for sale in Oakland County, Michigan that falls under your budget then visit Homes2MoveYou. Get in touch with a me directly 248-790-5594 and start seeing houses in areas of your liking.