The fall real estate market isn’t historically synonymous with the frenzied profile of the summer market. However, fall real estate trends are looking different this year. The intrusion of the Coronavirus has certainly altered the way the housing sector operates, but that doesn’t mean it was all that bad. Here are six things everyone should know about the fall real estate market:
- Price Fluctuations
Pent-up demand has already increased prices in some areas, and low-interest rates are being used to spur more activity. While prices may drop in the near term, they have recently been on an upward trajectory. As a result, the fall real estate market may be the perfect time to sell a property.
- Less Inventory
It’s no secret: inventory levels are one main factor that controls the housing market and its ability to reach its full potential. If there aren’t enough homes to keep up with demand, the market can drastically slow. The fall real estate market is experiencing a low inventory. Notably, there are new construction projects on the horizon, but they won’t be ready to add to the pool of inventory anytime soon. In fact, many of those homes are already under contract before they are completed! For now, we are stuck with insufficient inventory. The good news for sellers, is the inventory shortage has led to increased competition, and has contributed to higher-than-usual fall prices!
- Low Mortgage Rates
Right now, 30-year fixed-rate mortgages carry an average interest rate of 2.94%, according to Freddie Mac. At that rate, borrowing costs are historically low. Mortgage rates are so low buying activity is starting to inch higher in many markets. We aren’t sure exactly how long rates will remain this low, but for now, the catalyst is working. Today’s rates are saving buyers thousands of dollars over the life of the loans, and nobody wants to miss out. When interest rates are lower, buyer affordability is higher!
- Fast-Paced Activity
It is critical that buyers pay attention to the pace of the market. Due, in large part, to the inherent lack of inventory, competition is fierce over the available properties. Most properties for sale, if they are priced right, are receiving multiple offers, making time of the essence for interested parties. At the very least, it’s safe to assume prospective buyers will jump on those properties they find that fit their criteria. A buyer would be wise to do everything they can to facilitate a timely transaction to avoid interference from the impending competition. Days on market have dropped, which means buyers need to be ready to act fast and decisively. For more information on how to ensure a speedy transaction, simply send us an email or give us a call.
- More Demand
Despite the current events, demand remains strong. It would appear as if everyone who wanted to buy before COVID-19 shut the world down, still wants to buy today; it’s as simple as that. While today’s unemployment numbers have shaken a lot of people’s confidence, there are still a TON of buyers that are ready to buy. Unemployment has been steadily improving, and many people are finding that they can work from home. Working from home has opened many doors for buyers that can now shop in areas previously restricted by their location of employment. In addition, Millennials are now coming of age. Expected to make up the largest portion of homebuyers this fall, Millennials are heavy favorites to drive demand in the latter part of the year.
- Year end Sales for Home Improvement
The end of the year is loaded with several different holidays, most of which tend to correspond with year-end sales. November is practically dedicated to sales in every form; everyone from department stores to online retailers compete for consumers’ business by offering one-a-year sales. As a result, anyone with a home and a project list is awarded the opportunity to secure some amazing deals on products for the house. It is very common for everything from kitchen sinks and refrigerators to flooring and light fixtures to be on sale at the end of the year. Homeowners wanting to make improvements should take advantage of these year-end sales if they are wanting to save some money. The money saved at the counter can increase the value of a home, which can help save homeowners even more money.
Whether you’re buying or selling, now is the time to partner up with an agent to ensure your success!