NORFOLK, Va. — High interest rates have kept some prospective home buyers in Hampton Roads from taking the leap. But experts say there are ways that buyers can make the most of the current housing market.
Local mortgage banker Robby Dobrinsky said conventional loans were around 7% last year but are in the low 8s now. He also said government loans were just below 6% and now they're below 8%.
Dobrinsky of Atlantic Bay Mortgage Group notes a drop-off, but if you look around many neighborhoods in Hampton Roads, you may see more "For Sale" signs up.
According to the Real Estate Information Network or REIN, inventory grows as prices come down. Realtor Bethany White of The Bethany White Group of Virginia Beach sees a shift in the market and says our area is unique.
"We're always gonna have people that get orders, that are transitioning, that are retiring, that are marrying — all types as we call life," White said. "So that's the great news about Hampton Roads: there's always an opportunity for someone looking to buy or sell."
There are some things sellers and buyers can do so they don't stay on the sidelines. White says there's been a shift in concessions.
"Sometimes, sellers wouldn't help with closing costs assistance, some buyers couldn't even have a home inspection, they had to wait, they had to bid above the sales price, so we are seeing those types of things go away," White said.
Dobrinsky suggests people buy the house and rent the rate.
"If you can afford it, treat it like a band-aid and when the rates get lower you'll be the first person I call to do a refinance and lower your payment," Dobrinsky said.
You should keep in mind your interest rate is determined by your credit score, so it's a good idea to plan ahead.
"Getting pre-approved is just critical for the home buying purpose." White points out. "Even if it's a year from now, you want to know how much house you can afford."
If you want new construction, White says things are looking up.
"I do believe the supplies are coming in better and we're seeing lumber prices coming down a bit so that in turn has helped the new construction prices," White said.
Dobrinsky says the housing values are still going up so waiting for the rates to drop may not be the answer to saving some cash. And if you bought when rates were super low, you'll have more money for your next purchase.
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