August 25, 2019

Rates Drop, Home Construction Rebounds

Rates

As trade tensions continued to make headlines this spring, mortgage rates returned to previous lows. During those same months a slow-down in construction resulted in a stagnant pool of available homes for sale.

Turns out this is good news for the summertime home buyer. The lower borrowing rates and the end of a housing surplus prompted a rebound of the housing industry in May, say market experts.

“What a perfect time to find your new home,” says Barry Friedman of Primary Residential Mortgage Inc. in California, MD. “You’ve got both the lending market and the housing market on your side.”

A still-declining inventory of houses in Southern Maryland in early spring inched prices up from this time last year in Charles and St. Mary’s counties, reports Southern Maryland Association of Realtors. The hikes are small, and could be canceled out or even reversed by more houses coming on the market as the construction season continues.

The median home price dropped the first quarter of 2019 in Calvert County by nearly 5 percent, while in St. Mary’s the median price climbed by 9.5 percent and 4 percent in Charles.

The dwindling supply had made the end of 2018 something of a seller’s market. Then interest rates began to rise late last year and sales stalled across the winter. The new housing starts seen across the nation in May will increase the inventory and lower interest rates will add more buyers to the marketplace.

To put yourself in the best position possible for the lower rates, a visit with a Primary Residential Mortgage lender can help you secure your financing in advance.

To qualify for a mortgage in advance of your purchase gives you the advantage of being ready when you find the house you want. And as the housing market heats up again, buyers who are ready to purchase will snap up the properties first.

Despite slight pricing increases, and even the previously higher interest rates, sales have not tapered off in St. Mary’s County, where the first quarter of 2019 showed a 7 percent increase in sales from 2018. Still, until new housing starts gear up to fill the void, the inventory is shrinking as the lower interest rates reinvigorate buyers.

While the number of sales fell in Calvert, Southern Maryland Association of Realtors found the drop in sales was the result of a lack of inventory rather than a lack of interest. As new homes come on the market, buyers can expect a competitive market. Again, the pre-qualified buyers will have a leg-up on winning the home of their choice.

“Another advantage of qualifying for your mortgage in advance of purchase, with the lower interest rates you may qualify for a higher priced home,” Mr. Friedman explains. And as the inventory grows throughout the summer construction season, pre-qualified borrowers will continue to have an edge on other buyers.

Primary Residential Mortgage lenders have a full array of lending programs to work with to help you pre-qualify to buy the home you want.  A PRMI lender will meet with you and work to qualify you for a custom fitted mortgage for your dream house.

“While the rates remain low and as the inventory is growing, come and see us at PRMI,” Mr. Friedman encourages, “let us help get you first in the door of your new home.”

Primary Residential Mortgage is located at 23131 Three Notch Road, Suite 201, California, MD  20619; 301-737-0001.

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