Why Not to Wait Until Spring to Make a Move
The housing market recovery coming into the new year has already been 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 setting up this winter as an ideal time to make a move. Below we layout some of the biggest wins for homebuyers 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.”
The summary is, it’s less expensive to borrow money for a home loan today than it has been. Although mortgage rates are expected to remain relatively low in 2021, even the slightest increase can make a huge difference in your payments over the lifetime of a home loan. Therefore, the greatest opportunity lies within the current window of mortgage rates, before they 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 homeowners gained since last year is $17,000. Consider this tremendous amount of forced savings as a homeowner, and the opportunity to use this increasing equity to accomplish a move into a home that fits your changing needs.
3. Home Prices Are Appreciating
According to leading experts, home prices are forecasted to continue appreciating. Currently, experts are projecting more moderate home price growth than last year, but still on an upward trajectory throughout 2021.
Knowing home values are increasing while mortgage rates are so low should help strengthen your confidence in buying a home before prices go higher, and most importantly result in a smart long-term investment.
4. There Are Not Enough Homes for Sale
With today’s low homes inventory, that is contributing to this home price appreciation, sellers are in the driver’s seat. The competition is fairly high among buyers, so homes are selling quickly.
Making a move during this busy buyers timeframe, may mean your house surfaces to the top of the buyer pool. Selling your house before more listings come to the market in the traditional spring market might be your best chance to capitalize on a deal.
One Last Thought
If you’re considering making a move, this winter may be your best time, especially with today’s low mortgage rates and limited inventory. Reach out to a local realestate professional for success with your home buying & selling ventures in 2021!
~Real Advantage Partners team