HOME BUYER POST PANDEMIC HAVE DEEP POCKETS OF CASH
The housing market has looked COVID 19 in the eyed and won. Well some would say "yes" and some would say "not really".
I am of a mind of both. "Yes" because the statistics and new media headlines are shouting that the housing market is the best in history. Prices have risen and sellers are making more money during the Pandemic than prior to March 2020. The reason the prices are going up is simply basic economics. There are fewer homes for sale per interested buyer. Homes that are for sale in the mid range of the market are securing multiple offers in the double digits and buyers are foregoing inspections and appraisals to compete with one another. This is "not really" a good market as it is lopsided, and severely punitive to one party. It will be great to get back to a more normalized market where the flow of home sales is not dependent on a few sales.
Mortgage rates continue to dip and peak around the 3% range and according to the Federal Reserve, the rates are not anticipated to be increased as a tool of monetary policy. So this is great news and we will all need to keep an eye on inflation.
During the Pandemic, the savings rate moved from 9% to 28%. This is a big saving amount. And with over 87% of buyers purchase homes with a loan, the savings will hopefully make a difference in qualifying for a home loan or creating that safety net for repairs and improvements.
Here is a great article that speaks to interest rates as of May 6th.
Thinking of Selling your home? Wondering what is the value in this fast paced market, simply click below for a free market analysis.