What to Expect in Real Estate This Summer
According to recent real estate data, it's going to be a hot summer - and not just weather-wise.
For most of 2020, we saw the Covid-19 pandemic cause an inventory crisis and historically low mortgage rates. Now that vaccines have been quickly rolled out across the nation and an end to the pandemic is in sight, what changes can we expect to see in the real estate market this summer?
What to Expect in Real Estate this Summer
The first months of 2021 started off with new historic lows for interest rates for 30-year, fixed-rate mortgages, with the average interest rate at 2.65% in early January (according to Freddie Mac.) In April, we saw the interest rates begin to rise slightly to an average of 3.13% for a 30-year, fixed-rate mortgage. Although the rates have risen, we expect them to remain relatively low throughout the next couple of months.
As far as the inventory crisis goes, we can expect inventory to increase- but it will remain a seller’s market. According to a recent report by Realtor.com, the number of homes on the market in March was 52% lower than in March 2020. With low inventory levels persisting, homebuyers can continue to expect heavy competition in the buying process. Bidding wars will continue to raise the prices of homes, making the process remain just about as difficult as it has been the last year.
Although the market is highly competitive and homes are commonly selling for much over asking price, the competition has not scared off buyers. Senior Economist at Realtor.com, George Ratiu, reports that millennials (the largest share of homebuyers across the U.S. currently) are not deterred from the competition in the market.
"For many millennials, the last year provided an opportunity to save,” said Ratiu. “…. Yes, the market is difficult, but a lot of young people out there remain committed to buying a home," Ratiu said.
With the number of interested buyers out there who continue to be outbid in the current market, the number of transactions are expected to only increase with the end of the pandemic.
Work with a Knowledgeable and REALTOR®
Homes are selling faster than ever before. Low mortgage rates and high demands have caused an inventory crisis in New England. On average, homes are now selling within 33 days- which is about half the time it took a year ago. Looking for an available home and getting to it fast enough before it sells is now a full-time job.
Hiring one of our knowledgeable and experienced REALTORS® can help you avoid the frustration of missing out on the home you want.
If you are looking to buy or sell a home, contact one of our real estate professionals today at Verani.com. Our agents and staff are fully committed to guiding you through these difficult times and will be happy to accommodate you.
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