Fall 2020 Still Hot Real Estate Market
Historically, as kids head back to school in the fall and the weather starts to cool down the real estate market tends to decelerate. However, as with most things since the start of the pandemic, this year isn’t likely to stick to the trend.
Changing school districts and disrupting kids’ routines typically deters parents from making a move after school has started. But some experts are forecasting that will be less of a factor this year as many schools are choosing, or offering, for students to work online. With buying a new home presenting less interference for kids, parents are able to search for a new home with less time pressure.
Additionally, average mortgage rates dropped as low as 2.88 percent, the lowest ever for a 30-year home loan. The policy makers at the Federal Reserve have indicated they expect to keep the short-term federal funds rate at its current range of 0% to 0.25% through 2022, which impels mortgage rates to follow suit. Lower mortgage rates yield lower mortgage payments.
Builder confidence in the market for newly-built single-family homes improved 14 points in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) report. And, single-family housing starts and permits saw double-digit growth in June, according to the NAHB.
Realtor.com reports that buyer demand sent asking prices up 8.5 percent in July from a year ago. Moreover, 48 of the 50 nation’s largest metros saw year-over-year gains in median listing prices last month.
Recent forecasts by data analytics firm CoreLogic suggests that national home prices could drop slightly in the coming months, but if mortgage rates stay low home prices could also escalate through the end of the year.
Bottom line, we’re still experiencing a seller’s market, and experts haven’t seen any signs that imply that it won’t continue through fall. Buyers are snatching up homes faster than they’re being listed for sale. Realtor.com’s latest housing trends report asserts that they’re lasting 12 fewer days on the market than they were this time last year.
To be competitive, buyers should have a mortgage pre-approval letter before making an offer. It’s also not a bad idea to get quotes from three lenders before selecting their mortgage provider to find the best rate and terms for them.
Anyone contemplating selling a house has plenty of buyers looking for homes to purchase. Realtors nationwide are reporting an average of 3 offers per house and an increase in bidding wars. With demand still high, sellers have an opportunity to achieve very favorable terms.
If you’re considering buying or selling, this is the perfect time to consult a local real estate professional to see how you can work with the market trends in your local area.
The team at The Platinum Group, Realtors have spent years growing and refining their knowledge, and are ready to share their expertise, comprehension of our market conditions, and skilled negotiation techniques.
With access to a whole suite of tech tools that help navigate the home buying or selling process, The Platinum Group can help you move through the transaction with contact-free virtual showing tools, online application tools, and a sophisticated searching capacity.
For a no-obligation consultation, call today: (719) 536-4478 or visit PlatinumHomesSales.com.