Right now, the housing market is full of outstanding
opportunities for both buyers and sellers. Whether you’re thinking of buying
your first home, moving up to a bigger one, or selling so you can downsize this
spring, there are perks today that are powering big moves for people across the
country. Here are the top two to keep on the radar this season.
The Biggest Perk for Buyers: Low Mortgage Rates
Today’s most compelling buyer incentive is low mortgage interest rates. The 30-year fixed-rate is now averaging just over 3%. While that’s slightly higher than the record-lows from 2020 and earlier this year, it’s still way lower than historic norms, making purchasing a home an ongoing perk for hopeful buyers (See graph below):
This is a huge advantage for buyers and helps to make owning
a home attainable for more households – and there’s good reason to strive for
homeownership. The latest Homeowner Equity Report from CoreLogic shows how
homeowners saw major gains in their net worth last year, all thanks to owning a
home. Frank Martell, President and CEO of CoreLogic, explains:
“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.”
Low mortgage rates are a plus for buyers right now, but
experts forecast we’ll see them continue to rise as the year goes on. If you’re
ready to purchase a home, it’s wise to get started on the process soon so you
can secure today’s comparatively low rate.
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, and it’s creating a serious
sellers’ market. According to Danielle Hale, Chief Economist at realtor.com:
“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.” (See map below):
The lack of houses for sale continues to challenge the
market, and with low mortgage rates fueling buyer demand, homes are hard for
buyers to find today. According to the latest Realtors Confidence Index Survey
by the National Association of Realtors (NAR), the average house is now
receiving 4.1 offers and is on the market for only 20 days.
Buyers are clearly eager to purchase, and because of the
shortage of inventory available, they’re often entering bidding wars. This is
one of the factors keeping home prices strong and giving sellers leverage in
the negotiation process.
Homeowners who are in a position to sell shouldn’t wait to
make their move. There’s a 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 buyer demand,
homeowners can potentially earn a greater profit on their houses and sell them
quickly in the fast-paced spring market.
Bottom Line
Whether you’re thinking about buying or selling a home,
there are major perks available in today’s housing market. Let’s connect today
to discuss how these favorable conditions play to your advantage in our local
area.
Source: Real Estate with Keeping Current Matters