To buy, or not to buy—that is the question bouncing around many Americans’ minds, although Fannie Mae notes the amount of consumers feeling positive about buying a home has increased 52% to 61%, month to month.
If you or your clients have been wondering the same, I’d like to share a few points worth considering. Because while the market isn’t perfect, there’s still a case to be made for why now could be a good time to buy, if your clients can find a home they like within their budget.
Homes aren’t getting any cheaper, even in a pandemic – According to Freddie Mac, on average, the prices of homes across the nation have doubled since December 2000. Also, Realtor.com shared statistics showing that median listing prices are 5.6% above where they were a year ago.
All this to say, waiting to buy could result in paying a higher price or getting priced out of the market.
Mortgage rates are still generously low – Buying (or refinancing) when rates are hovering around all-time lows can obviously save clients a considerable amount of money over the life of their loan.
Sellers are optimistic and may be yearning for liquidity– In the same Fannie Mae survey mentioned at the top of this e-mail, there was a jump from 32% to 41% of people who felt now is a good time to sell.
Depending on the seller, they may be looking to shed their monthly mortgage payment and get some liquid cash, and that may provide a little wiggle room for negotiation.
Once again, if your clients can find a home they love within their budget and they feel confident about their employment, now would be a great time to buy.
Please contact me if I can answer any of your questions or you have any real estate needs.
Tim Houterloot – Broker/Realtor