As we navigate these unique times, we know that the impact of COVID-19 has caused disruptions across various aspects of our lives. However, amidst the challenges, there are positive signs in the housing market, making it an interesting time for potential homebuyers like you.
Why Now Might Be the Right Time to Purchase:
1. Purchase Applications Are Up: Despite economic uncertainties, applications to purchase a home are running 9% higher than last year. Factors such as historically low mortgage rates and increased consumer demand for housing are driving this trend.
2. People Are Returning to Work: While headlines may suggest otherwise, there are indications of improvement in employment. Continuing claims have dropped, signaling that individuals are returning to work. This restoration of income may lead more people back into the housing market.
3. Price Trends of Existing Homes: Existing home sales were down, but prices are up by approximately 2.17% in April and 7.4% on the year. Limited inventory and increased prices suggest sellers believe any downturn is temporary, making options relatively scarce for buyers.
4. New Home Sales Are Higher: Despite a slight dip, new home sales increased by 0.6% in April. The prices of new homes have fallen, making it an opportune time for buyers to explore the new construction market.
5. Real Estate Agents Are Optimistic: According to the National Association of REALTORS®, many real estate transactions can be conducted while following social distancing rules..
What This Means for You:
- Explore Your Options: With increased purchase applications and competitive rates, now is a good time to explore homeownership opportunities.
- Consider New Construction: Falling prices in the new home market present a potential advantage for buyers.
- Stay Informed: Real estate professionals are adapting to current conditions, offering virtual alternatives for tours and maintaining safety measures for in-person interactions.
What’s Next?
Ready to ride the housing wave? Let’s Connect to discuss your options and gain insights into the unique conditions of your market.