Although entering the housing market may seem daunting, there are many exceptional opportunities available to both buyers and sellers. Whether you are purchasing your first home, transitioning into a larger one, or even selling; there are many perks to ensure you are making the right choice. Here are some amazing perks being offered if you are interested in making a big move in the housing market.
A Perk for Buyers: Low Mortgage Rates
In today’s housing market, buyers are being compelled with the great incentive of low mortgage rates. There were record low mortgage rates in 2020 but there is still great news with 30-year fixed rate mortgages averaging at just above 3%. This interest rate is still extremely low when compared to rates from the past. These rates are a perk for hopeful buyers entering a challenging seller’s market. Buyers are striving to reach the goal of homeownership so that they are able to reap all of the benefits. Thanks to purchasing a home, homeowners are now experiencing exceptional gains in their net worth.
Frank Martell, President and CEO of Corelogic, has reported:
“Positive factors like record-low interest rates and a booming housing market encouraged many families to enter homeownership. As a result, we may see more of those currently renting start to enter the market in the near future.”
If you are looking to purchase a home, now is the time to make your move to censure you will receive a competitive mortgage rate before they rise as the year goes on.
A Perk for Sellers: Low Housing Inventory
In today’s strong sellers market, it is becoming increasingly more difficult for buyers to find homes for sale. There is a housing shortage creating the best possible situation for seller’s. The average house is getting approximately 4.1 offers and will only be on the market for around 20 days. These are the reasons as to why buyers are now entering into bidding wars and multiple offer scenarios. These factors are contributing to appreciating home prices and giving seller’s leverage while negotiating terms that are the most suitable to them.
Danielle Hale, Chief Economist at realtor.com, has stated:
“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.”
Homeowners who are in a position to sell are encouraged to get their house on the market when conditions are most favorable. Seller’s have the opportunity to earn a larger profit on their homes with low inventory and high buyer demand.