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:
- Families have equity in their homes.
- There is a shortage of housing inventory, not an overabundance.
- Irresponsible lending no longer exists.
- 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.