This year has been a strange time for the housing market due to the coronavirus pandemic and wobbly economy. Real estate experts have closely examined the market, and their data suggests that the number of buyers outnumbers sellers. This means that this is actually the best time to sell a house in years.
Here’s 6 reasons why the market is actually moving in the seller’s favor:
- Home buyer demand is back with a vengeance
Now that lockdown restrictions have been lifted in most states, and Open Houses are permitted again, buyers are out and eager to make up for lost time. In May, after two months of decline, pending home sales shot up 44.3%—the highest month-over-month jump since 2001, when the index began, according to the National Association of Realtors. Also, with an increasing number of people working from home for the foreseeable future, people can move farther away, where they can get more bang for their buck.
- Home inventory remains low
The number of homes for sale to meet this pent up demand is at an all time low. The housing inventory is 27% lower than it was this time last year, according to realtor.com. This is a result of people living in their homes longer than they used to, and fewer distressed properties on the market, “due to the massive government stimulus support, mortgage forbearance, and generous unemployment benefits, said Lawrence Yun, chief economist of the NAR.
- Home prices are up
Conditions are perfect for sellers to get high prices with inventory down and demand up. Home asking price is actually higher than it was before the pandemic.
- Mortgage interest rates are low
Average interest rates recently hit a historically low rate of 3.07% for a 30 year fixed mortgage, which has caused mortgage purchase applications to jump exponentially since last year.
- The economy is showing signs of a slow recovery
The pandemic led to record high unemployment rates in March, however these rates have fallen slightly. With national trends headed in the right direction, this could be a good sign that people are still eager to buy. Businesses are slowly adding jobs back as people begin spending again.
- Home buyers needs have changed
Buyers now want to live in houses where they have a home office, more privacy, and outdoor space. They are also interested in suburbs and urban areas over larger cities. This is a direct result of the pandemic, as working from home has caused some homes to just not work for buyers anymore. Buyers want to be able to work in peace from their homes, and want to feel safe in a less populated area where covid-19 cases aren’t as prominent. Buyers are also interested in virtual options during the home buying process. In some cases, buying a home completely digitally can be faster and more efficient than in person meetings. It is also, of course, safer during a health pandemic.
If you’re looking to take advantage of the market by buying or selling a home, contact us virtually today!
Source cited: Realtor.com