An Ongoing Seller’s Market
Housing has lined up in favor of sellers for years now and it is due to a low inventory of homes available to purchase coupled with strong demand boosted by historically low mortgage rates.
It is tough buying a home in today’s housing market. A couple browses home after home until they find one worth seeing. After scheduling a showing, they write an offer to purchase because the house would be perfect for their growing family. It meets all of their requirements and it has the added bonus of a downstairs bedroom. Excitement and anticipation are in the air as they wait for a response. Their enthusiasm begins to dim as they find out that there are nine additional offers on their “perfect” home. After going back and forth with the seller, the buyers learn that they were not the winning bidder on the home. They have to go back to the drawing board and browse for their next opportunity.
It is not going to get easier anytime soon for buyers. Waiting is not the answer. Based upon today’s supply and demand, the longer a buyer waits, the more homes will appreciate. That will be the story in 2021 as well. Additionally, mortgage rates are at unprecedented record low levels. According to Freddie Mac’s weekly Primary Mortgage Market Survey® released on November 25th, the 30-year fixed remained at 2.72%, its thirteenth record low this year. Mortgage rates are not forecasted to go any lower in 2021. In fact, there is a stronger chance that they will slightly rise as the economy improves next year. Higher rates combined with higher prices does not work in a buyer’s favor.
ATTENTION BUYERS: Do not wait to purchase. Delaying a purchase will result in higher prices and higher mortgage rates, cutting into home affordability. The current housing market may be frustrating, but it would be foolish to wait and not take advantage of record-low rates and lower home values.
Click on the image below the Read the Orange County Housing Report.