Here’s what you should know about our market’s recent rebound.
The real estate market is currently experiencing a rebound unlike anything we’ve ever seen. If you’ve been thinking about selling your home, now might be the right time. If you’ve been waiting on the sidelines, just know right now is a unique moment you will want to take advantage of. Let me give you the details:
According to the National Association of Realtors, sales of existing homes jumped nearly 21% in June compared to May (the last months for which we have complete data). This is the largest monthly gain since tracking began in 1968. Much of this reflects pent-up demand from the spring season, which was paused by the coronavirus pandemic. However, it’s also a sign of more fundamental changes.
Record-low mortgage rates are also helping things. Several weeks ago, the 30-year fixed mortgage rate fell to an all-time low of 2.87%. That’s a full percentage point lower than a year ago. There’s now talk of it falling to 2.5%.
“Sellers will have a strong tailwind due to low inventory.”
With today’s historically low rates, there is an opportunity for sellers to maintain a monthly low payment while also getting more use for their money—more square footage and better features instead of costly renovations. Homeowners ready to make a move may have a golden opportunity to do so right now. These low mortgage rates are making homes more affordable; they are also supporting continued price growth. As a result, June made history: The median price of an existing home sold rose 3.5% annually to the highest price on record.
If, like most people, you’ve been sitting on the sidelines because of the pandemic, now is a great moment to act. If you are thinking about selling, you will have a strong tailwind because inventory is so low. At the end of June, the supply of existing homes for sale fell 18.2% annually. This means there is a lot of unmet demand, so you could sell quickly and for top dollar.
Of course, with the pandemic situation still developing, there are no guarantees about how things will look in several months. However, right now is a golden moment for the real estate market.
If you have questions for me or need anything at all, don’t hesitate to reach out via phone or email. I look forward to hearing from you.
