Have You Been Considering Buying?

By Jennifer Alvarez, Realtor

@Coldwell Banker Cocoa Beach Realty

Brevard County, Florida

realtor.jenniferalvarez@gmail.com • www.cocoabeachrealty.com/jenniferalvarez

If buying has crossed your mind there are three things to think about now...you may consider converting your dream into an existing reality...

1.) Rents continue to escalate, as is the demand...

The U.S. Census stated "rental vacancies have fallen to 8.8% in the first three months of 2012 from 9.4% in the fourth quarter, marking the lowest level in 10 years.  Rising demand for rental units, has pushed prices to the second-highest rate ever (since 1999).   The Census reported 132.6 million housing units in the United States in the first quarter. Some 114.1 million are occupied, with owners living in 74.6 million of them. Renters live in the rest."

2.) Property prices are on the rise, as is construction...

After years of steady and double digit declines in Brevard County, the median residential sales price increased by 10.5% from 2011 to 2012.  Florida Today reported "Brevard homebuilders see signs of resuscitation".  For the first time in several years, the profusion of  foreclosures is seemly coming to an end and developments in the area is one again building

3.) Mortgage interest rates have in shown increase, as may the loan qualification guidelines soon...

Bank Rate.com reported that from 2012 to 2013 "The 30-year fixed-rate mortgage rose 11 basis points to 3.77%. The 15-year fixed-rate mortgage rose 9 basis points to 3.03%. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, rose 9 basis points to 4.17%.  The 5/1 adjustable-rate mortgage rose 7 basis points to 2.78%.

 

Federal regulators ("Department of Housing and Urban Development, the Office of the Comptroller of the Currency and the Securities and Exchange Commission) are considering a regulation that could create difficulty for most.  Known as the QRM (Qualified Residential Mortgage rule). If goes in effect, a requirement from many home buyers to have at least a 20% down payment in order to qualify for a best interest rate mortgage, and possibly of the FICO score minimum increased even more.