Perks of Buyers & Sellers in Today’s Housing Market
Right now, the housing market is brimming with excellent prospects for both buyers and sellers. If you're looking to purchase your first house, step up to a larger one, or sell so you can downsize this spring, there are benefits available today that are fueling big moves for people all over the country. Here are the top two key things to keep an eye on this season.
The Biggest Perk for Buyers: Low Mortgage Rates
Low mortgage interest rates are the most convincing buyer opportunity today. The 30-year fixed-rate mortgage currently has an average rate of just over 3%. Although this is marginally higher than the record lows set in 2020 and earlier this year, it is still far below historical norms, rendering homeownership an ongoing benefit for prospective buyers (see graph below):
This is a major gain for investors and aims to make homeownership more available to more families – and there are many reasons to aspire for homeownership. According to CoreLogic's new Homeowner Equity Report, homeowners saw significant increases in their net worth last year as a result of owning a house. CoreLogic's President and CEO, Frank Martell, explains:
“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.”
Low mortgage rates are a plus for buyers right now, but experts forecast we’ll see them continue to rise as the year goes on. If you’re ready to purchase a home, it’s wise to get started on the process soon so you can secure today’s comparatively low rate.
The Biggest Perk for Sellers: Low Inventory
There are clearly not enough houses on the market to accommodate the number of buyers wanting to buy them, resulting in a serious sellers' market. According to realtor.com's Chief Economist, Danielle Hale:
“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.” (See map below):
The market continues to be challenged by a shortage of affordable homes, and low mortgage rates are fueling buyer demand, making it difficult for buyers to find homes today. According to the National Association of Realtors' (NAR) new Realtors Confidence Index Survey, the average house now receives 4.1 offers and is on the market for just 20 days.
Buyers are evidently willing to buy, and due to the lack of available inventory, they often participate in bidding wars. This is one of the reasons that is holding home prices high and giving sellers bargaining power.
Homeowners who are in a position to sell shouldn’t wait to make their move. There’s a light at the end of the tunnel for today’s inventory shortage, so listing this spring will get your house on the market when conditions are most favorable. With low inventory and high buyer demand, homeowners can potentially earn a greater profit on their houses and sell them quickly in the fast-paced spring market.
There are significant benefits available in today's housing market, whether you're thinking about buying or selling a house. Let's connect today to speak about how these favorable conditions in our region will help you.