2020 has been an odd year to say the least, but has it opened up some new thoughts about what people are looking for in a forever home? ABSOLUTELY. After adapting to new lifestyles (remote work, virtual learning, working out at home, etc…) many are finding that the homes that seemed like they were big enough actually do not have the space to be able to accomplish all of these new home tasks.
“According to the latest Home Price Insights from CoreLogic, prices have appreciated 7.3% year-over-year. At the same time, the National Association of Realtors (NAR) reports that inventory has dropped 22% from one year ago.”
Why do these statistics matter to you? Inventory is down and demand is up. If you are thinking about selling to upgrade – the equity in your house has likely increased and there are many buyers looking.
Give the Kate Seaman Team a call and find out how we can get you into a home that will fit your new lifestyle.
Renters – there are pluses and minuses involved in the housing market as of December 22, 2020. Good news: more renters are able to afford buying! It went from 33% to 38% as of the 3rd Quarter of 2020. Bad news: down payments can be tricky for some renters , but don’t let that deter you!
“According to NAR’s 2020 Profile of Home Buyers and Sellers, first-time buyers typically financed 93% of their home, or put down 7% for down payment. NAR’s monthly Realtors® Confidence Index survey places the average down payment among first-time buyers at around 9% to 10%. While a 3% FHA loan is available, first-time buyers are putting down a higher down payment, presumably to save on the monthly mortgage payment.”
The Kate Seaman Team knows how to get you through each hurdle. We analyze the market trends and use data to assist you throughout any buying process. We have contacts with top professionals in the area to assist with mortgage needs and give you the best advice for financing.
2020 has been filled with challenges for certain, but good news – the 2021 real estate forecast is looking great! Why you ask?
1. The Economy Is Expected to Continue Improving
“There is nothing fundamentally ‘broken’ in the economy that needs to heal…there was no obvious financial bubble driving excessive activity in any one economic sector when the pandemic hit…With Covid-19 cases surging again, it is understandably hard to look optimistically to the other side of this winter…Don’t let the near-term challenges distract from the economic stage being set for next four years.” – Tim Duy, University of Oregon
2. Interest Rates Are Projected to Stay Low
“In the latest projections from Freddie Mac, interest rates for a 30-year fixed-rate mortgage are expected to remain at or near 3% next year.”
3. Future Home Sales Are Forecasted to Grow
“We expect home sales in 2021 to come in 7.0% above 2020 levels, following a more normal seasonal trend and building momentum through the spring and sustaining the pace in the second half of the year.” – Danielle Hale, Chief Economist at realtor.com
If you’ve thought about buying or selling in 2020 but have held off, now may be the time to make your move!
Winter is not the time for slowing down with the way this housing market has been! Lawrence Yun, Chief Economist for the National Association of Realtors says it perfectly – “The demand for home buying remains super strong…And we’re still likely to end the year with more homes sold overall in 2020 than in 2019…With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”
The housing market is on fire and now is the time to list. Buyers are still actively seeking and inventory is low. Chief Economist for Realtor.com, Danielle Hale, says ““We currently see buyers sticking around in the housing market much later than we usually do this fall. If that trend continues, we will see more buyers in the market this winter, too. So, this winter is likely to be a good time to sell.”
Low interest rates and job recovery on the rise – Buyers: this is your time to get the house you’ve been looking with the kind of rate you’ve been waiting for!
Inventory is low and buyers are still primed – Sellers: if you want to list, don’t be shy the buyers are still looking!
Contact our team and watch let us work our magic.
Over the last couple of years, I’ve been noticing a shift to the start of the spring selling season, which in the past has been early-mid April here in our market. This year the trend is continuing to move closer to the beginning of the year. Right now, I have 14 clients with a pending sale or purchase, all of whom went under contract after the first of the year. Assuming they all successfully close, that number equates to 35% of my annual average in the first 8 weeks!!! In addition, I’ve been in at least five multiple offer situations and 60% of my listings have accepted an offer within the first two weeks on the market. This tells me that 2019 is going to be a vibrant and competitive year for the real estate industry! So, what does that mean if you’re in the market this year? That depends on which side of the sale you’re on.
For sellers, this means you don’t necessarily have to wait for the snow to melt to list your home. Inventory in our most desired areas is so low that buyers are braving the colder temperatures to make sure they don’t lose out. This includes lake homes- my team and I have sold 4 so far this year! However, proper preparation and pricing are still the most important factors in successfully selling your home. If you’d like to sell this year- reach out and we can set up a meeting to review your options.
For buyers, a competitive market means you must be pre-approved prior to looking at homes. Depending on how accessible your financial documents are and the availability of loan officers it may take a couple of days to issue a letter. If you wait until after you’ve found the right house, you’re likely to miss your chance. Pre-approval letters are valid for 90 days so make this a priority if you’re hoping to buy this year. Another suggestion; attend as many open houses as you can! Buyers in this type of market need to be decisive which can be difficult, especially if you’re a first-time home buyer. Going to open houses will help you hone your preferences and be more confident in your decision when the time comes.
So, this Sunday when you lose an hour of sleep b think on the bright side. An extra hour of daylight is sure to come in handy for showing or viewing homes!! Happy Spring!!