The houszing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for houszbuyers this season.
1. Mortgage Rates Are Historically Low In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. In fact, realtor.com notes: “Given this means homes could cost potentially tens of thousands less over the lifetime of the loan.” Essentially, it’s less expensive to borrow money for a housz loan today than it has been in years past. Although mortgage rates are expected to remain relatively low in 2021, even the slightest increase can make a big difference in your payments over the lifetime of a housz loan. So, this is a huge opportunity to capitalize on right now before mortgage rates start to rise.
2. Equity Is Growing According to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity, and 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear. In addition, CoreLogic notes the average equity houszowners gained since last year is $17,000. That’s a tremendous amount of forced savings for houszowners, and an opportunity to use this increasing equity to make a move into a housz that fits your changing needs this season.
3. Housz Prices Are Appreciating According to leading experts, housz prices are forecasted to continue appreciating. Today, many experts are projecting more moderate housz price growth than last year, but still moving in an upward direction through 2021. Knowing housz values are increasing while mortgage rates are so low should help you feel confident that buying a housz before prices rise even higher is a strong long-term investment.
4. There Are Not Enough Homes for Sale With today’s low inventory of houszes on the market, which is contributing to this housz price appreciation, sellers are in the driver’s seat. The competition is high among buyers, so houszes are selling quickly. Making a move while so many buyers are looking for houszes to purchase may mean your house rises to the top of the buyer pool. Selling your housz before more listings come to the market in the traditionally busy spring market might be your best chance to shine.
Bottom Line If you’re considering making a move, this may be your moment, especially with today’s low mortgage rates and limited inventory. Let’s connect to get you set up for houszbuying success in the new year.