Rates Are Low
Mortgage rates are at their lowest level in nearly 50 years. It’s a great opportunity for anyone wishing to sell, refinance, or purchase real estate! According to lender Freddie Mac, which began tracking the data in the early 1970s, the average rate on a 30-year mortgage is down to 3.24%, well below its long-term average of 7.98%. The current rate is even below its 2019 average of 3.94%.
Prices Are High
The price of existing homes is another benefit for anyone looking to sell! According to the National Association of Realtors, the median sales price of an existing home is at a record high of $286,800. This is $50,000 or 24% above the previous record peak which occurred prior to the 2008 financial crisis. Prices do vary by region.
Inventory is Low
While fewer homes are available, prices start to rise. We are currently amidst a sellers’ market. The good news for sellers is that the current inventory of existing homes is near its lowest point ever at 1.47 million units.
Ivy Zelman of Zelman & Associates:
“Housing will fare better than expected during this severe downturn.”
“Mortgage demand from home buyers shows unexpectedly strong and quick recovery…The quick recovery has surprised most forecasters.”
Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy of the National Association of Home Builders (NAHB) says:
“Overall, the data lend evidence to the NAHB forecast that housing will be a leading sector in an eventual economic recovery.”
National Association of Realtors (NAR):
The average new home sale has a total economic impact of $88,416.Buying and selling a home supports our economy as a whole!