The Weather Isn't the Only Thing Heating Up This Summer!
You’d never think that more heat would relieve this sweltering Iowa summer, but we love seeing the housing market getting hotter! Due to limited inventories, buyers and sellers are adjusting their market strategies to ensure the best outcome. Dow Jones and NASDAQ are reaching new heights, which is causing consumer confidence to do the same.
While we recognize minimal rate increases by The Fed, the reality is that mortgage rates remain near historic lows. This has motivated many individuals to jump off the fence and explore the inventory within their desired locations. With that said, potential buyers are quickly recognizing how hot the Iowa market truly is. Buyers are encouraged to prepare ahead of time before entering the limited selection of the current market.
Another contributing factor to limited inventories is the recent surge of millennials into the buyers’ market. In the state of Iowa, according to the Millennial Tracker, powered by EllieMae, this segment of buyers is not only buying, but they are also well-qualified. Their average loan size is $138K, and 78% are electing for a conventional loan product, while only 18% are electing for the FHA option. This segment of buyers is also well-prepared. The Millennial sector is averaging only 39 days to close with an average credit score of 721. With customizable loan options for condos and townhomes, the Des Moines metro market is one of the hottest in the entire Midwest and is drawing a lot of attention from the millennial buyer.
As you can see, the real estate market in Des Moines and the state of Iowa is very active. If you find yourself wanting to join this search for a new place, finding a real estate agent and a qualified mortgage lender should be high on your priority list. When it comes to lending, an educated professional is the best asset you can have. They will be able to outline a comfortable price range from which to shop and, most importantly, recommend the correct loan product that fits your financial situation.
Many borrowers still believe that they must put 20% down to purchase their dream home, but that is just not the case anymore. There are several loan programs available for all types of needs. There are even loans with grants that make homeownership that much easier. A trusted real estate agent will help you understand all this, as well as the market, local schools, population growth and planned community development. All of these factors may play into the price and how quickly you may need to act upon a potential offer.
When you finally find your dream home, don’t let the moment pass- contact our mortgage lending professionals to help you get prepared!
Lincoln Savings Bank | Member FDIC | Equal Housing Lender