This Winter is Projected to be one of The Best Ever in Home Sales!
Home sale peak season has traditionally been in the summer months and then slows down when kids start returning to school. This year has been the exception!
According to the National Association of Realtors (NAR), single-family home prices rose in all 181 metropolitan areas in the third quarter of 2020. Many of those areas saw double-digit growth from last year. The average median sales price of homes sold in October 2020 was up to $313,000.00. This was up $42,000 from last year.
Lawrence Yun, NAR’s chief economist, says, “For all metro markets to experience a price gain is implying truly something magical is going on as regarding how people view a home. This winter home sales activity could be one of the best ever. “
So what do you need to know about the upcoming market if you are thinking about selling?
Home Prices are expected to continue to rise while mortgage rates stay steady.
In 2020, mortgage rates hit record lows. At the end of November, Freddie Mac put the average for a 30-year mortgage at 2.7% with 0.7 points paid. Economists expect rates to stay at about 3%. A chief economist at a real estate data analytics firm predicts that home prices will be 6-8% higher at the end of this year.
Homes are selling QUICKLY!
On average, homes sold in October went under contract in just 38 days. This is according to Re/Max National Housing Report. October was the fastest-paced month in the history of this report! If you are thinking about selling, be prepared to be packing boxes soon!
Bidding wars are on the rise, so agents advise sellers not to jump on the first offer they get. A better strategy may be to set a deadline for offers and then evaluate all the offers you get. It is also advised not just to look at the price offered but also to evaluate other details, such as cash versus mortgage offers.
There is a short supply of homes on the market in many areas, so if you are also planning to buy, be prepared to make offers on four to five homes before you have one accepted.
Hard to find deals
Due to the lack of supply versus demand, buyers will likely have a harder time getting discounts. Demand for new homes is also strong, and supply is lower in this market as well. Also, building supplies are more expensive than before the pandemic, so builders have increased prices as well.
With rising home prices, low mortgage rates, and low inventory, this winter might be the perfect time to sell! If you would like more information or would like to find out what your home is worth, send us a message, and we will happily answer any questions you have!