What strange times we live in. Even though we’re still in the midst of a global pandemic and an economic downturn, our housing market is strong. This has come as a surprise to many – especially those who want to sell their homes. Many home sellers have been understandably hesitant to put their homes on the market during these conditions. But the reality is that there’s never been a better time to sell your home. Here’s why.
Demand is high
Since lockdown restrictions have eased in many locations, demand for housing has picked up. In fact, you could say that homebuyers are flooding the market – especially in smaller cities and the suburbs. While many homebuyers put off their home searches in the early spring during the beginning of the pandemic, they are now back. And those whose needs have changed are also entering the market. The lockdown showed us just how important our homes are to our safety and well-being. Many new buyers have decided that it’s time for a change.
There’s a shortage of homes for sale
With all the pent-up demand, there is also a shortage of inventory. There are more buyers in the market than there are homes for sale. In 2019, inventory was already down. A year later, and the shortage of inventory is even more pronounced. Obviously, some sellers have been reticent to list because of the pandemic. But we’re also seeing fewer distressed homes on the market because of the federal economic stimulus support including mortgage forbearance and additional unemployment benefits. Some sellers have even experienced bidding wars, helping to ensure that they’ll get the best possible price for their homes.
Home prices have increased
The combination of high demand and low inventory means that home prices have held steady and even increased this year. Sellers have discovered that they can get top dollar today. According to the National Association of Realtors, median home prices have increased 7.7 percent. Home prices are actually higher today than they were before the coronavirus pandemic. This is excellent news for sellers who may have been worried that they wouldn’t get a good price on their homes.
Mortgage rates are at all-time lows
Feeding into the demand for homes are current interest rates, which have hit all-time lows. According to Freddie Mac, average interest rates have hit a record low of just over three percent. Buyers with excellent credit may even qualify for interest rates just under three percent. This means that buyers could potentially save thousands of dollars over the life of the loan. As a result, buyers continue to be attracted to the market.
The economy is picking back up
While it’s true that the U.S. has experienced high rates of unemployment because of the pandemic, recent data suggests that the economy is picking back up. Businesses are beginning to reopen and adding back jobs. Consumers are starting to spend again. And many companies are working hard to keep up with new demand. Even though it will take time for the country to completely recover from the economic downturn, it is heading in the right direction.