What strange times we live in. Even though we’re still in the midst of a global pandemic and an economic downturn, our housing market is strong. This has come as a surprise to many – especially those who want to sell their homes. Many home sellers have been understandably hesitant to put their homes on the market during these conditions. After a very active spring and summer, the market in Houston has been left with a historically small number of homes for sale. This presents a unique opportunity this Fall for aspiring home sellers. Here’s why.
Demand is high
Since the lockdown restrictions eased in May, demand for housing has picked up considerably. While many homebuyers put off their home searches in the early spring during the beginning of the pandemic, they are now back. And those whose needs have changed are also entering the market. The lockdown showed us just how important our homes are to our safety, productivity, and well-being. Many new buyers have decided that it’s time for a change.
There’s a shortage of homes for sale
With all the pent-up demand, the spring and summer months left us with a shortage of inventory. There have been more buyers in the market than there are homes for sale. Obviously, some sellers have been reluctant to list because of the pandemic. But we’re also seeing fewer distressed homes on the market because of the federal economic stimulus support including mortgage forbearance and additional unemployment benefits. As a result, some sellers have even experienced bidding wars, helping to ensure that they’ll get the best possible price for their homes. The current low inventory levels are expected to continue through the end of the year.
Home prices have increased
The combination of high demand and low inventory means that home prices have held steady and even increased this year. Sellers have discovered that they can get top dollar today. According to the Houston Association of Realtors, median home prices have increased 7.6 percent. Home prices are actually higher today than they were before the coronavirus pandemic. This is excellent news for sellers who may have been worried that they wouldn’t get a good price on their homes.
Mortgage rates are at all-time lows
Feeding into the demand for homes are current interest rates, which have hit all-time lows. According to Freddie Mac, average interest rates have hit a record low of just over three percent. Buyers with excellent credit may qualify for interest rates under three percent. This means that buyers could potentially save thousands of dollars over the life of the loan. As a result, buyers continue to be attracted to the market.
The economy is picking back up
While it’s true that the U.S. has experienced high rates of unemployment because of the pandemic, recent data suggests that the economy is picking back up. Businesses are beginning to reopen and adding back jobs. Consumers are starting to spend again. And many companies are working hard to keep up with new demand. Even though it will take time for the country to completely recover from the economic downturn, it is heading in the right direction.
All of these factors should present a unique opportunity for home sellers this fall. Assuming mortgage rates continue to remain low, savvy home buyers will continue to be active in the market. In some neighborhoods, this will lead to higher prices, and for most homes, quick relative sales.
Remember that every situation and every home in unique. If you would like to speak a Realtor to see if now is the right time for you to sell, feel free to give call us at 713-869-7500 or email us at [email protected]. You can also fill out the form below to get matched with an agent.