To Explain the unusual Real Estate Market:
Mortgages are once again incredibly low. After increasing for much of last year, mortgages started dropping last November – and they kept dropping, up to and including the present. The current 30-year fixed-mortgage rates stands at 3.49%, just 0.18 over the all-time historic low.
Second, home prices are rising again. In July of this year home prices rose 3.6% over the previous year. We are seeing fewer bidding wars. Just 10% of listed homes wound up in a bidding war this August, compared with 42% last year.
Finally, existing home sales are barely holding steady. Home sales dropped in every month for the past year and a half.
Mortgage rates are low, making homes more affordable. Yet home sales are not taking off. Prices are increasing, but this isn’t being driving by bidding wars.
What’s going on:
Overall economic uncertainty, the stock market is experiencing big swings, which pushed mortgage rates down. Shortage of homes on the market is the biggest issue.
This Fall we saw an increase in the supply of homes for sale, however, the ongoing drop in interest rates, more demand soon overwhelmed the increase in supply. This explains the low number of home sales.
If you are considering selling your home, now is the time to act:
The current low mortgage rates are making homes very affordable for buyers. This can change at any time, with mortgage rates swinging upwards.
Home prices are very healthy right now, largely due to the lack of inventory, but if mortgage rates increase this will quickly change.
If you list your home now, chances are good that you can sell it quickly and for top dollar. Wait a few weeks or months and the situation can change dramatically.
For a market analysis on your home simply contact Penny & Team at John L Scott, (206) 618-5123, email Penny@TalkToPenny.com
Serving: Bainbridge Island, Poulsbo, Silverdale, Kingston, Bremerton, Port Orchard, Port Ludlow and Ocean Shores.