Top perks for buyers and sellers in today's market

The U.S. housing market has recently made a massive turnaround. It is setting up opportunities for both buyers and sellers that are UNPRECEDENTED. I know, you probably have heard “unprecedented” too many times lately, but we truly are experiencing a real estate market like never seen before. Buying or selling a home this year will offer perks today that are rarely available, and definitely worth looking into.

Here are my two favorite.

Buyers top perk: Low Mortgage Rates

The most valuable incentive for buyers currently are the mortgage rates. Throughout 2020 new all-time low records have been set multiple times. The 30-year fixed-rate is now averaging 2.88%, by far the lowest in the survey’s history, which dates back to 1971. For buyers, this is an enormous advantage.

The National Mortgage News notes how the low rates offer buyers increasingly more purchasing power:

“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.”

These astonishingly low rates offer opportunities that otherwise has not been viable in decades and should not be missed if the time is right for you to buy a home.

Sellers top perk: Low Inventory

Currently, there are not enough properties on the market to meet the high demand of buyers. 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 lacking inventory has been a challenge for a time now, and with low-interest mortgage rates backing buyer demand, inventory is even harder for buyers. The demand is driving eager buyers into bidding wars. Because of this home prices are staying strong, of course, a benefit 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 this low inventory and high purchasing demand, homeowners can earn increased profit and do so very quickly.

Take away:

So if you are thinking about buying a home or selling your current home consider these key perks. Give me a call today to discuss the many ways we can implement these perks for you to make your best move.