2020 has brought about massive change for just about everyone. In particular, COVID-19 has led to situations that are causing many Americans to seek housing options that better meet their current needs.
All of this change means buyers in just about every local real estate market are buying up any available listings quickly. We’ll explore 3 of the primary reasons why homes are moving so fast this year.
Low Mortgages Rates
Mortgage rates have continued to tick lower, but this can’t and won’t last forever. Buyers know this so they are hoping to lock in a great mortgage rate while they are still available. They can afford to get more house at a lower price right now than they may be able to in the future. Sellers benefit from low mortgage rates in two ways:
- Increased demand from buyers looking to purchase a property
- The ability to lock in a low rate once they purchase a new home
The fact is most sellers become buyers either right before or after their home is sold. The double benefit created for most sellers means they are able to get a great price for their home quickly and get into a new home they may not be able to afford in the future.
Millennials Are Upgrading Their Lifestyle
Americans tend to buy their first home in their late 20s to early 30s. Younger Millennials have been a part of the workforce now for a decade and are coming of age. They are primed to move from being renters to becoming owners as they begin to start families, have a second child, or even a third child.
Older Millennials in their mid to late 30s are looking at buying their second or third home. Their savings and investments have benefited from one of the longest strong economic runs in memory. Many in this age group are ready to upgrade their lifestyle as they have been able to upgrade their financial standing.
For both of these reasons, Millennials are a primary driving force at many of the price points currently available in the housing market.
Time At Home Has Led Many to Reevaluate Their Housing Needs
Government-mandated stay at home orders has upended living situations, which has led many Americans to rethink their environment. For some people, this means they have realized their current home is missing specific features – more space, less space, a bigger kitchen, less upkeep, etc. Other people, perhaps due to an increase in divorce rates during the pandemic, have seen changes in their relationships and family life, which has led to changing needs for housing. On the flip side, too much time alone has led to more people seeking companionship, which can also affect living needs.
These lifestyle changes mean people need a new place to live that meets their needs, and that home could just be yours.
Over to You
If you are considering selling, there is no time like the present. Listings are moving quickly, home values have gone up, and you can get a great mortgage rate on a new home if you need to buy.
We’re ready to help you sell your home quickly and for the best price at The Pamela Walters Group. Contact us today to get a free home valuation and find out what your home could be worth.