In my last post I had talked about the market heating up, but I said to proceed with caution as the market was still a buyers market. Well I stand corrected, for now... Although there are plenty of homes available on the market, the numbers can be deceiving. In my experience with my buyers over the last month, we are seeing homes last 1-7 days on the market with multiple offers made. If a home is clean, appropriately priced and shows well the seller should have very little problems selling their home this summer.
One of the main driving factors to the increased real estate traffic is the low interest rates buyers are able to obtain on their mortgages. Individuals are able to lock in at 3.75% interest rate or sometimes lower on a 30 year fixed mortgage. That is amazing compared to what my parent's generation has seen in their life time. Back in the 1980's buyers faced 12%-17% on mortgages! OUCH! Overall this is a great time for sellers to list their homes. Sellers are selling their homes for more than the asking price, they are seeing offers in the first couple days of being listed and the buyers are hungry for great homes to enter the market.
If we see the interest rates increase this summer I would anticipate the market to slow down. Furthermore, we are still in the early part of the real estate season. Spring is traditionally the time of the year where most sellers list their properties. As the year progresses the more preferred homes will quickly leave the market leaving an array of investment properties, homes that need a little TLC and less buyers looking for homes which will in turn slow down the market activity. That said, there will still be good homes and some of the more preferred homes on the market come late summer/fall, but there will be less of them to go around.
I will continue to provide updates as the summer unfolds. If you have any questions between now and then, feel free to email me at ClintRHansen@gmail.com or call me, 651-247-4804.