The current housing market offers perfect opportunities for both buying and selling a home. In today’s market, there are a couple of perks for both home buyers and sellers that are hardly ever available.
This is a perfect time to purchase a home because of the historic low mortgage rates. The average mortgage interest rate has hit an all-time low. In fact, it is the lowest in the history of the Freddie Mac survey which dates back to 1971. Today’s buyers can actually obtain a mortgage rate lower than the past two generations of homebuyers.
“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,” according to the National Mortgage News.
Buyers will not only save money on a home, but they will have the opportunity to get more home for the money. This is especially appealing with today’s pandemic pushing work from home. Homeowners are re-evaluating the amount of space they need in a home.
As for current sellers in the market, the low inventory has definitely been an advantage. According to the National Association of Realtors (NAR) the inventory of homes coming into the market continues to decline. Even before the pandemic hit, the inventory was low. In today’s market, houses are selling faster than they are being listed.
Bidding wars are the norm now. The fuel of low mortgage rates and low inventory is pushing buyers into bidding wars.
“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply,” says Lawrence Yun, Chief Economist for NAR.
If you are in the market for a home or want to sell your current home, now is the time. Contact a Realtor in your area who can help you through the process.