People have been asking for an update on what’s going on in the market—what are buyers and sellers doing? Well recently, LendingTree surveyed 1,000 current buyers in the market and came up with three reasons why 53% of them are more likely to purchase this year due to the pandemic.
The first reason is that we have historically low interest rates. Since those are holding strong, buyers have more purchasing power and lower monthly payments. This, in turn, helps sellers by attracting more buyers to the market. The more buyers there are, the more offers a seller gets on their home, which increases their chances of getting the highest possible price for their property. This creates a win-win situation for buyers and sellers.
Sam Khater, the chief economist at Freddie Mac, recently said, “[…] As the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery.”
The second reason is that people are in a much stronger equity position now than they were in the housing crisis of 2008, which wasn’t caused by a pandemic. They’re also saving money during quarantine; since many people’s costly summer plans have been pushed to the backburner, they can afford to put some away to purchase an investment property or another home.
The third reason is that people are re-evaluating the space in their homes, now that they’ve been forced to stay there for longer than they might ever have expected. Many are beginning to wonder if they have enough space and whether it’s feasible to upsize.
Despite all the chaos we’ve been experiencing lately, the market is displaying some positive trends for both buyers and sellers and I expect there to be many more opportunities on both sides when we come out of this.
If you have any questions about the state of our market or buying and selling homes, don’t hesitate to reach out to us. We’d love to help you.