Have a couple minutes to educate yourself on the current housing market? Here's 5 things you should know.
1. There are about half as many homes for sales now as there were this time last year. Even last year, Realtors were complaining about there not being enough inventory to sell...and now there is 50% less than that! It's a unique time for sure, and we are all figuring it out as we go along. Since there aren't many homes for sale, it is a great time to be a Seller because your competition is minimal compared to when there are enough or even too many homes on the market. If you've thought about selling a property that you own, now is the time to get top dollar for it. I'll gladly do an analysis to give you an idea of what your home would sell for in this current market.
2. Interest rates are at even crazier lows. You've probably heard Realtors and Lenders talking for years about how "interest rates are at an all-time low"...well now they're even lower. Borrowing money is currently so cheap, it's a no-brainer to secure a 30-year mortgage now. Whether it is to purchase a home, or refinance the one you own, I'm happy to be a resource for you, and help you build your wealth!. Here is a quick example of how interest rates impact the cost of a home.
In early 2020 the average interest rate was about 3.7%. That would make the monthly payment (minus taxes and insurance) for a $300,000 house about $1739.
Now interest rates are about 2.9%, and that would make the monthly payment on a $300,000 house about $1646. Almost $100/month of savings!
3. Buyers are chomping at the bit. Since interest rates are so fantastic, buyers are eager to get a home under contract and lock in a good rate. With money being so cheap to borrow, it is a great time to buy a home. It's just somewhat difficult right now since there are more Buyers than there are Sellers. Don't give up, Buyers! It takes time, but it's worth it, I promise. If you'd like to prepare to put your best foot forward when offering on a property, I'd love to chat with you about that.
4. Home prices keep increasing. The average home price nationally is 15% more now than it was a year ago. With buyers competing over homes, they generally go into an offer situation knowing that they are going to offer above the list price. It's a good idea to look at homes that aren't at the top of your budget, so that you have the flexibility to offer more than what is listed. It wont always be like this, so that is just advice for the current market. It will change someday, and we will then adapt. It's important to be working with an agent that understands the market as it is and as it shifts.
5. The rise will slow down, but continue. There doesn't seem to be any sign of "a market crash" looming on the horizon, as communities are strong and people have confidence in the economy. Inevitably, the rate in which prices are increasing will level out a bit, but I wouldn't be concerned about the equity in your home decreasing. God isn't making any more land, so once you own some, you own a valuable asset. Yes there may be dips here and there, but at this point it looks like the value of real estate that you own is going to continue to appreciate for a while.
Share this info with people you know and love, as these are the five things about our current real estate market that are going to be most impactful not only to buyers, and sellers, but the economy in general.