Is Now a Great Time to Buy or Sell?

As we all know by now, mortgage interest rates have fallen to historically low levels and are projected to remain low in the foreseeable future. With the recent shelter at home orders, many buyers have been staying home allowing them to save on many of the usual expenses like gas, dining out, entertainment, etc. What does this mean for homeowners? It means that there is a huge incentive for buyers to jump into the market. The historically low-interest rates combined with the extra money for closing cost and down payments have home buyers ready to buy. Many of these buyers are having a difficult time finding a home to buy today due to the extremely low inventory of homes available for sale.

FreddieMac is identifying this time as the buying mood for buyers:

“While the rebound in the economy is uneven, one segment that is exhibiting strength is the housing market. Purchase demand activity is up over twenty percent from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood. However, it will be difficult to sustain the momentum in demand as unsold inventory was at near-record lows coming into the pandemic and it has only dropped since then.”

Chart showing Housing Supply over the past 12 months

What to do if you are a buyer right now?

Get yourself pre-approved. By getting fully pre-approved now will not only help you gain a competitive advantage above the rest, but it will also accelerate the homebuying process. Pre-approved buyers are considered more seriously when making an offer to a seller. 

What does this mean for sellers now?

The key motivation for buyers to purchase right now is the extremely low-interest rates. So the advice is to jump ahead of the competition and get your house on the market before other sellers put their home on the hot summer market. Selling now before other sellers come to market in your neighborhood this summer might put your house high on the list for many buyers. 

You can rest assured that many safety guidelines and precautions are in place to safely show your house. Give us a call today and let us guide you through the entire buying or selling process, seamlessly.