Extraordinary Real Estate Services by The Lisa Miguel Team!
A recent survey by Lending Tree tapped into behaviors of
over 1,000 prospective buyers. The results indicated 53% of all homebuyers are
more likely to buy a home in the next year, even amid the current health
crisis. The survey further revealed why, naming several reasons buyers are more
likely to move this year (see graph below):
1. Low Mortgage Rates
The biggest reason potential homebuyers indicated they’re
eager to purchase this year is due to current mortgage rates, which are
hovering near all-time lows. Today’s low rates are making it more affordable
than ever to buy a home, which is a huge incentive for purchasers. In fact, 67%
of respondents in the Lending Tree survey want to take advantage of low
mortgage rates. This is no surprise when comparing historic mortgage rates by
decade (see below):
“As the economy is slowly rebounding, all signs continue
to point to a solid recovery in home sales activity heading into the summer as
prospective buyers jump back into the market. Low mortgage rates are a key
factor in this recovery.”
2. Reduced Spending
Some people have also been able to save a little extra money
over the past few months while sheltering in place. One of the upsides of
staying home recently is that many have been able to work remotely and minimize
extra spending on things like commuting expenses, social events, and more. For
those who fall into this category, they may have a bit more saved up for down
payments and closing costs, making purchasing a home more feasible today.
3. Re-Evaluating Their Space
Spending time at home has also given buyers a chance to
really evaluate their living space, whether renting or as a current homeowner.
With time available to craft a wish list of what they really need in their next
home, from more square footage to a more spacious neighborhood, they’re ready
to make it happen.
What does this mean for buyers and sellers?
With these three factors in play, the demand for housing
will keep growing this year, especially over the summer as more communities
continue their phased approach to reopening. Buyers can take advantage of
additional savings and low mortgage rates. And if you’re thinking of selling,
know that your home may be in high demand as buyer interest grows and the
number of homes for sale continues to dwindle. This may be your moment to list
your house and make a move into a new space as well.
If you’re ready to buy or sell – or maybe both – let’s
connect to put your plans in motion. With low mortgage rates leading the way,
it’s a great time to take advantage of your position in today’s market.
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