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Prepare for Home Buying in a Seller's Market

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The mortgage industry has experienced significant changes in recent years – some mandated by the federal government in the form of new regulations. Other changes have been brought on by cultural behaviors of homebuyers or technological advancements. However, the primary factors contributing to mortgage activity remain constant: the health of the economy, mortgage interest rates and the availability of homes for sale. So, what’s the status of mortgage activity in Bank SNB markets? 

Across Colorado, Kansas, Oklahoma and Texas, we see positive signs of economic improvement. Unemployment remains relatively low. The energy sector is rebounding, and we see increases in jobs and payroll numbers. Mortgage rates remain historically low.
 
However, the greatest challenge for homebuyers today is the relatively low number of homes available for sale. Ideally, a community should have a six-month average supply of houses for sale. Over-supply occurs at more than six months and is considered a “buyer’s market.” A home supply less than six months is considered an inventory shortage and can lead to a “seller’s market.” According to data from the first quarter of 2017, here’s where our markets stand:
 
Stillwater, Oklahoma City, Tulsa and San Antonio – Home inventory below six months = seller’s market
Dallas, Denver, Austin and Wichita – Home inventory below three months = seller’s market
 
While we don’t see significant price inflation, housing in Bank SNB markets is fairly competitive. The best way to prepare for home buying in a competitive, seller’s market is to get pre-qualified for a mortgage before making an offer. You can conduct preliminary research on bankSNB.com to explore available loan types and which buyers they are best for, but it’s always best to discuss details with an experienced loan officer. If you think a new home is on the horizon in the near future, contact a local Realtor or research online to find the home that’s right for you. These steps will help you be better prepared to move quickly on your desired new home.
 
Today, getting pre-qualified for a mortgage is easy; just provide your gross monthly income, current monthly debt payments, amount available for a down payment and credit history via an online application. At Bank SNB, our experienced team of mortgage experts can generally provide pre-qualification within a couple of hours, if not minutes. Most banks, including ours, allow you to receive and sign home loan documents electronically, which offers more convenience and speeds up the process.
 
Contact our knowledgeable team to start the home buying process today. 
 
This edition of Market Momentum was written by Bank SNB President, Mortgage Division Cade Crawford.
 
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