This year’s real estate market has displayed some significant strength in many areas. Therefore, at some point in time, buyers and sellers are pondering if it is the right time to make a move whether it be to upgrade, downsize, or even enter the homeownership arena. The truth is that there are some great advantages for both buyers and sellers that are fostering these moves all across the country.
The Buyer Advantages
The driving incentive for buyers these days is the exceptionally low home loan rates. Despite any recent movement, the average 30-year fixed rate mortgage rate is hovering right around 3%. Although this is only a bit higher than it was in 2020, this is still significantly lower than historic norms. According to Freddie Mac, we are experiencing some of the lowest rates seen in the last 50 years. Experts do predict that we will see rates gradually rise as the year goes on so it is probably a wise time to secure a loan in the near future. Additionally from a homeownership standpoint, a recent Homeowner Equity Report from CoreLogic has shared that homeowners last year saw major gains in their net worth because 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.”
The Seller Advantages
These days and for a while now there has not been enough inventory available for all of the buyers looking to make their 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 the National Association of Realtors (NAR), the average property is receiving 4.1 offers and is only on the market for 20 days until it is put under the agreement. The slim inventory and the eagerness of buyers are leading to bidding wars which increases the selling price in the end.
Finally, there are some compelling reasons to buy and sell these days. If the timing is right for your personal situation then it may just be worth considering.
