Many homeowners know that spring and summer are popular times to put their home on the market. The weather is nice and it’s easier to move with the kids on summer break. However, savvy sellers are learning that listing their home in the fall has distinct advantages. Even with the unprecedented coronavirus pandemic and the upcoming election, many buyers are motivated to find their dream home before the end of the year.
It’s a seller’s market as more buyers take out mortgages at record-low interest rates.
Despite the uncertainty of the pandemic, mortgages are at a historic low, driving demand to grow. As recently as September, Freddie Mac reports that the average interest rate on a 30-year fixed-rate mortgage was 2.86%. Applications for mortgages to buy a home are up 21% from this time last year, according to the Mortgage Bankers Association.
Historically low mortgage rates gave homebuyers an additional 10% purchasing power, allowing the average buyer to afford nearly $32,000 more than last year. Overall, home sales increased by 1.4% compared to this time last year. In a market analysis completed by House Canary, this is largely because first-time buyers and urban renters wanting to buy a more spacious suburban property are taking advantage of these unprecedented interest rates.
High value, quick sale
With the increased demand of buyers, driven by low interest rates, home prices are up and sellers are accepting offers more quickly than before. In a recent analysis, C.A.R. found that September home prices have increased 17% compared to September 2019. Additionally, houses are selling more quickly during a time that is usually slow for the real estate market. In September, the average home went under contract in 16 days, 44% faster than last year. These findings indicate that the strong demand of buyers is also translating into strong offers, leaving sellers eager to close early.
Take advantage of selling your home this fall! Reach out to one of Home Bay’s agents today to get expert advice on how to draw homebuyers to your property.
With demand booming, it is important that both sellers and buyers are staying safe and healthy during coronavirus. See here for the safety measures for home tours Home Bay implemented: Taking precaution when showing your home.
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