When it comes to real estate, how could there be “something for everyone” in the middle of a pandemic? Whether you choose to ease out of lockdown or stay put, in this month’s blog I wanted to share three insights about the current market that just about every homeowner or potential homeowner will find relevant. There’s truly something for everyone!
Thinking about selling? Here’s what you need to know right now.
For starters, buyers out shopping right now are SERIOUS! Every showing represents a qualified and motivated buyer, which is not normally the case. In addition, inventory is low right now — latest reports indicate listing inventory is down by approximately 20%. So those qualified, motivated buyers who need to make a move have less to choose from. Normally, every 10 showings leads to 1 offer (assuming price and condition are where they should be). But right now, we’re seeing a ratio of 1 offer per every 7 showings. Likewise, low inventory + serious buyers means bidding wars and higher offer prices. Sounds crazy in a pandemic. We wouldn’t have believed it if we hadn’t seen it first-hand! Last week, The Wistrick Team put two listings under contract with multiple offers.
Thinking of buying? Here’s where you have advantages.
Because we here at The Wistrick Team consider your home an investment, you simply can’t ignore how cheap money is to borrow right now. With interest rates hovering in the upper 2’s for a 15-year fixed loan and low 3’s for a 30-year fixed loan, your buying power is just insane! So while you may not find a home drastically discounted due to lower inventory, you will be enjoying a historically cheaper payment. In the long-term, you’ll pay down much more on principal and capitalize on 5%+ appreciation in your home value per year. Stay put for 5 years, and the earned equity will be a thing of beauty.
For everybody else …
You might say, Mike, we ain’t goin’ anywhere! Good news for you … just because you aren’t moving, doesn’t mean you can’t also take advantage of the low interest rates. We’ve had many clients refinance. Some are even going the cash-out refinance route to pay for home renovations or additions. There’s truly no better time to consider tackling these projects when lower interest rates provide the financial margin you need. And if you’re a homeowner who likes to keep an eye on what home values are doing in your area, I can get you set up on a monthly “Homebeat” email that tells you what homes are listing for, selling for, and how many days they’re on market. Homebeat emails even include photographs, so you can compare each home to your own.
See? Just like I said. Something for everyone! Any one of these steps requires strategic coordination in order to maximize your investment. Luckily, we’ve done this a time or two and would be happy to guide you, your family, friends and co-workers down the right path. Feel free to reach out anytime with questions. Or check out any of our “Start Here” options on this website for detailed info available to support anyone looking to buy, sell, or strategically maintain their home.