housing market

 




 

Today’s housing market is making a truly impressive
turnaround, and it’s also setting up some outstanding opportunities for buyers
and sellers. Whether you’re thinking of buying or selling a home this year,
there are perks today that are rarely available, and definitely worth looking
into. Here are the top two.

 

The Biggest Perk for Buyers: Low Mortgage Rates

The most impressive buyer incentive today is the average
mortgage interest rate. Just last week, mortgage rates hit an all-time low for
the eighth time this year. The 30-year fixed-rate is now averaging 2.88%, the
lowest rate in the survey’s history, which dates back to 1971 (See graph
below):

 

 

mortgage rates




This is a huge advantage for buyers. To put it in
perspective, it means that today you can get a lower rate than any of the past
two generations of homebuyers in your family if you decide to purchase at this
time.

 

In addition, the National Mortgage News notes how today’s
buyers have increasing purchasing power due to these low mortgage rates:

 

“Purchasing power rose 10% year-over-year…With interest
rates hitting record lows, buyers were able to afford $32,000 “more house” as
of July 23 than they could the year before with the same monthly payment.”

 

This is a great perk for buyers who are hoping to
potentially get more for their money in a home, something many are considering
today as they re-evaluate the amount of space they ideally need for their
families. It is an opportunity not seen in 50 years, and one not to be missed
if the time is right for you to buy a home.

 

The Biggest Perk for Sellers: Low Inventory

Today, there are simply not enough houses on the market for
the number of buyers looking to purchase them. According to the National
Association of Realtors (NAR):

 

“Total housing inventory at the end of June totaled 1.57
million units, up 1.3% from May, but still down 18.2% from one year ago (1.92
million).”

 

The red bars in the graph below indicate that the inventory
of homes coming into the market continues to decline. It was low as we entered
the pandemic and has reduced even further this year. Houses today are selling
faster than they’re being listed, and that’s creating an even greater supply
shortage (See graph below):

housing inventory

 




The lack of inventory has been a challenging situation for a
while now, and with low mortgage rates fueling buyer demand, inventory is even
harder for buyers to find today. Buyers are eager to purchase, and because of
the shortage of homes available, they’re encountering more bidding wars. This
is one of the factors keeping home prices strong, an advantage for sellers.
Lawrence Yun, Chief Economist for NAR notes that this trend may continue, too:

 

“Home prices rose during the lockdown and could rise even
further due to heavy buyer competition and a significant shortage of supply.”

 

With low inventory and high buyer demand, homeowners can
potentially earn an increasing profit on their houses and sell them quickly in
this sizzling summer market.

 

Bottom Line

Whether you’re thinking about buying or selling at home,
there are some key perks available right now. Let’s connect today to discuss
how they may play to your advantage in our local market.

 

 

Source: Real Estate with Keeping Current Matters