Winter Will Bring a Flurry of Activity to the Housing Market
In the second half of this year, the housing market activity was strong, to say the least. Now, real estate experts are concentrating their forecasts on the winter season, which does not at all include plumeting temperatures. As Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), notes:
“It will be one of the best winter sales years ever.”
The typical winter drag in the housing market is simply not on the radar. Let's give a little more explanation on why.
While today’s historically low mortgage rates are expected to remain fairly low, they won’t remain at these unprecedented lows for too much longer. Homebuyers may very well see this as one of their last opportunities to secure these fantastic low rates, which inevitibly means continued steadiness of activity in the housing market. In a recent article, Bankrate explained:
“If you’re looking to buy a home…expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.”
“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 challenge, however, is the lack of homes available for sale. With that in mind, homeowners may feel the need to balance whether they should sell this winter or wait until spring. Danielle Hale, Chief Economist for realtor.com, says it’s best for sellers to capitalize on this moment sooner rather than later:
“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.”
With buyers more or less eager to stay active this winter, sellers wanting to close a deal on the best possible terms should not delay putting their homes on the market until springtime.
One Last Thought
Experts agree the winter housing market could potentially be bigger than ever. Whether you’re ready to buy or sell, contact a local real estate professional today so you can be in your dream home near the start of 2021!