There are great perks for both in today’s real estate market
This year’s real estate market has displayed some significant strength in many areas and at any time buyers and sellers may wonder if it is the right time to make a move whether it be to upgrade, downsize or even enter homeownership. The situation is that there are some good advantages for both buyers and sellers alike that are fostering these moves all across the country.
The biggest perk for buyers these days are the very low mortgage rates. Despite any recent movement, the average 30 year fixed rate mortgage rate is right around 3%. Although this is only a little higher than it was in 2020, this is still drastically lower than historic norms. According to Freddie Mac we are seeing some of the lowest rates seen for the last 50 years. Experts do anticipate that we will see rates slowly rise as the year goes on so it is probably a wise time to secure a loan in the near future. Additionally, a recent Homeowner Equity Report from CoreLogic has shared that homeowners last year saw major gains in their net worth as a result of owning a home.
Frank Martell, CEO of CoreLogic states, “Positive factors like record-low interest rates and a booming housing market encouraged many families to enter homeownership. This growing bank of personal wealth that homeownership affords was noticed by many but in particular for first-time buyers who want a piece of the cake. As a result, we may see more of those currently renting start to enter the market in the near future.”
These days and for a while now there has not been enough housing inventory available for all of the buyers looking to purchase. Danielle Hale, Chief Economist for Realtor.com states, “Total active inventory continues to decline, dropping 50 percent. With buyers active in the market and sellers still slow to put homes up for sale, homes are selling quickly and the total number actively available for sale at any point in time continues to decline.”
According to recent news from the National Association of Realtors (NAR), the average home is receiving 4.1 offers and only staying on the market for 20 days until it has an accepted offer. The shortage of inventory and the persistence of buyers is causing bidding wars which ultimately increases the selling price.
In the end there are some great reasons to buy and sell these days and if the timing is right for you, it may just be worth considering.