The demand for homes this year is extraordinary as record numbers of hopeful buyers continue to buy homes. In a normal year, the peak home-buying season ends before early fall. However 2020 is anything but a normal year, and the housing market is no exception. Lawrence Yun, Chief Economist for the National Association of Real Estate Agents (POMEGRANATE), explains:
“Home sales traditionally decline by the end of the year, but in September they grew beyond what we usually see during this season.… I would attribute this jump to record low interest rates and an abundance of buyers in the market, including holiday home buyers given the greater flexibility to work from home.. “
What attracts so many buyers to the market?
“Mortgage rates are average today more than a full percentage point lower than tariffs for the last five years. “
If you’re buying a home now, there’s no question you want to take advantage of this opportunity – and you’re not alone. Competition among buyers is certainly growing as more buyers enter the market and mortgage interest rates remain so low.
Who plans to buy a home now?
Today’s affordability appeals to all generations and seems to be especially appealing to younger buyers who want to start growing their wealth by homeownership. There is a clear increase this year in the percentage of those in younger generations looking for homes. La National Association of Home Builders (NAHB) notes:
“Between the third quarter of 2019 and 2020, the share of Gen Z adults planning to buy a home rose three points to 14%. Millennials however are the generation most likely considering buying a home (22%).”
Here is a graph showing year after year an increase in home interest by generation:According to Mark Fleming, Chief Economist by First American, millennia reach their peak home-buying years, a likely driver in this increase:
“Record low mortgage rates and millennia continue to age in their main home-buying years accelerated demand, but lack of housing supply remains a challenge. “
What is the biggest challenge for today’s buyers?
Finding a home, however, as Fleming notes above, is clearly a challenge today. Yun also explains:
“There’s no shortage of hopeful, potential buyers, but inventory is historically low.”
With so many buyers actively looking for homes this year and so few homes for sale, it’s more important than ever to work with a trusted real estate professional to navigate today’s market. De pre-approval al supply wars and leadership on advance payment helpful resources, having an agent next to you could make the difference in your ability to land your dream home.
Let’s get connected if you’re willing to buy a home. More buyers means more competition, so you need an experienced guide to help you stand out from the crowd.
Content previously posted in Keep Current Things