Right now, the housing market is full of outstanding opportunities for both buyers and vendors. Whether you’re thinking of buying your first home, moving up to a bigger one, or selling so you can cut back this spring, today are bonuses that are causing big moves for people across the country. Here are the two best to hold the radar this season.
The Biggest Advantage for Buyers: Low Mortgage Rates
Today’s most compelling buying incentive is low mortgage interest rates. The 30-year fixed rate is now averaging a bit more 3%. Although this is slightly higher than the record lows of 2020 and earlier this year, it is still much lower than historical standards, making buying a home a lasting advantage for hopeful buyers. (See graph below):This is a huge advantage for buyers and helps make home ownership affordable for more homes – and there’s a good reason to strive for home ownership. The newest Homeowner Stock Report of CoreLogic shows how homeowners saw important gains in their net worth last year, all thanks to home ownership. Frank Martell, President and CEO of CoreLogic, explains:
“Positive factors such as record-low interest rates and a growing housing market have encouraged many families to enter home ownership. This growing bank of personal wealth that homeowners own has been noticed by many but especially for first time buyers who want a piece of the pie. As a result, we may see more of those currently renting begin to enter the market in the near future. “
Low mortgage rates are an advantage for buyers now, but experts forecast we will see them continue to increase over the course of the year. If you are ready to buy a home, it is wise to start the process soon so that you can ensure today’s relatively low rate.
The Biggest Benefit for Vendors: Low Inventory
Today there are simply not enough houses on the market for the number of buyers who want to buy them, and that creates serious vendor market. According to Danielle Hale, Chief Economist at realtor.com:
“Total asset inventory continues to decline, falling by 50 percent. With buyers active in the market and sellers still slowly selling homes, homes are selling fast and the total number actively sold at any one time continues to decline. “(See map below):
The lack of homes for sale continues to challenge the market, and with low mortgage rates provoking a buyer, homes are hard to find homes today. According to the latest Reliable Agent Index Survey for the National Association of Real Estate Agents (NAR), the average house is now getting 4.1 offers and is on the market only 20 days.
Buyers clearly want to buy, and due to the lack of available inventory, they often go to war. This is one of the factors that strengthens home prices and gives sellers leverage in the negotiation process.
Homeowners who can sell shouldn’t expect to make their move. It is light at the end of the tunnel for today’s inventory shortage, so listing this spring will get your house on the market when conditions are most favorable. With low inventory and high buying demand, homeowners may be able to earn more profit on their houses and sell them quickly in the fast-paced spring market.
Whether you are thinking about buying or selling a home, there are important advantages available in today’s housing. Let’s connect today to discuss how these favorable conditions are beneficial in our local environment.
Content previously posted in Keep Current Things