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Supply Squeezes Keeping a Lid on New Home Purchases

Are you looking to buy a new home?

With short supplies still being a major issue in many markets across the country, you may find it more difficult than you thought.

According to a recent report from the Mortgage Bankers Association, it looks like the limited supply will continue to be an issue for some time.

Recent reporting shows that mortgage applications that were put in for new homes slowed - if not stalled - in the month of January. According to MBA, this resulted in a dip of nearly 12.5% year-over-year.

However, the MBA reports that purchase applications actually grew from the months of December 2021 to January. A 10% month-over-month growth was reported, showing that while the market is still sluggish, there are some areas where demand is increasing.

In general, the reason for the slowdown is due to the continuing lack of available homes for sale. This has been a consistent issue over the past year - and with home options continuing to be limited, it’s likely to stay that way for the near future.

Finding (and Landing) Your Dream Home in a Tight Market

If you’re thinking of buying a new home, it’s important to be aware of these trends - and build a strong strategy. Here are a few tips to get you started:

1. Be prepared to move quickly.

When a good home does come up for sale, it often doesn’t last long on the market. If you see something that meets your needs, be ready to make an offer right away. This means having your financing in order and being pre-approved for a mortgage.

2. Stay flexible with your criteria.

It’s important to be realistic about what you want in a home. If you have very specific requirements, it may be difficult to find something that meets your needs. Try to be open to different neighborhoods, floorplans, and even price ranges.

3. Keep expectations in check.

It’s also important to remember that the current market is very competitive. This means that you may not be able to get the home of your dreams - at least not right away. Be prepared to make some compromises and be patient.

4. Know your budget.

This is especially important in a tight market, where you may be competing with other buyers for the same home. Make sure you have a realistic budget in mind and be prepared to stick to it.

5. Have a solid plan.

Buying a home is a big decision - and it can be stressful, too. Make sure you have a solid plan in place and be ready for anything. This includes having a backup plan if things don’t go as planned.

The bottom line is that buying a home in today’s market is going to be more difficult than ever before. But with a little preparation and flexibility, you can still find the right place for you and your family.

Find Homebuying Success with Simple Home Loans

If you are going to compete in today's market, you have to come in well-funded with a pre-approval.

At Simple Home Loans, our team of housing experts is ready to help you put together a winning offer, even in this tight market. We have access to a wide range of mortgage products and lenders, so we can find the perfect loan for your needs.

Ready to get started?

Contact us today to learn more about our home loan products and services. We look forward to helping you buy your dream home!

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