How’s the Market?

With COVID-19 slowing the housing market this spring, buyers are jumping back in and making their moves now.  Summer is the new spring for Real Estate this year.

A lot of people are asking:  How’s the market?  Is now a good time to buy or sell?  The answer is, YES!  Now is a good time.  According to Freddie Mac, mortgage rates have been below 3.3 percent for more than four weeks and are hovering near all-time lows, which is spurring strong interest by buyers and lifting showing activity up.  Market reports show median sale prices are up about 3.5% since this time last year and average days on market is about 41 days.  There is currently a 2 month supply of homes for sale.

”Mortgage demand from home buyers shows unexpectedly strong and quick recovery…the quick recovery has surprised most forecasters”
~ Diana Olick, CNBC

“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”
~ Mark Fleming, chief economist at First American

There are 4 major differences in today’s real estate market:

  1. Families have equity in their homes.
  2. There is a shortage of housing inventory, not an overabundance.
  3. Irresponsible lending no longer exists.
  4. Home price appreciation is not out of control.

Bottom line we are in a recession, but unlike 2008 this time the housing industry is in much better shape to weather the storm.