Housing Market News: Thinking about selling your home? Buying? Now’s a good time!
While Americans and the world have been hit hard with a number of economical, health, social and political issues, historically low interest rates, record numbers of people working from home, and children learning remotely has increased American’s desire to find their dream home. Rather than being motivated by fear to stay put, people want and need to look to the future. Many are doing that by shopping for a home that will be a sanctuary from the storm. Likewise, with a potential administration change, many are looking to make a long-considered move before any changes can be made to current policies. While many industries struggle, the housing market in Michigan and around the nation is strong.
While the fall months usually signify a huge slowdown in housing sales, this year it has been just like everything else, unpredictable. Closings are up, mortgage applications are increasing, costs of homes in Grand Rapids are up 15% on average according to the Grand Rapids Realtor Association. The year-to-date sales on houses has increased by a whopping 38% from last year and according to the Mortgage Bankers Association, this year’s housing loan applications have risen nationally by 40%.
Buyers have the benefit of the lowest interest rates since the Great Depression making buying an appealing prospect. Unfortunately, inventory is extremely low in all areas of Michigan. What inventory is available is often picked over, so buyers have to be swift and sure of what they want and be ready to make a solid offer on the home of their dreams. Because of the low inventory, housing prices continue to increase, over a 5.5% average nationally, making it more difficult for some to find the their forever home at a price point they can afford—but making sellers quite happy! Thankfully, for home buyers, the interest rates can help offset increases.
As for the future, forecasters believe things will continue to trend in the same direction for awhile. While election years often cause uncertainty in many markets and industries, economists agree that interest rates will likely stay consistent for the remainder of 2020 and even into 2021. Typically, old and especially new administrations, are hesitant to make changes early into a new year. Based on talks of a new administration’s change in tax policies, including a possible increase in capital gains taxes for those making 400K or more. Homeowners in that tax bracket should consider these potential changes if they are looking to sell their home in the next year.
Housing prices are projected to continue to increase in 2021, albeit more slowly. Forecasters also predict an increase in foreclosures in 2021 due to unemployment and the financial strain of the pandemic. This will somewhat increase inventory and may slow housing price increases for those looking to buy midway through 2021.
While experts continue to make predictions, we all know that life is anything but predictable, and with a new influx of COVID cases and talks of imminent closures, we may all be in for a surprise. What we do know is that nothing is certain and there is no perfect time to buy or sell. If you have been considering putting your home on the market, now might be the time, and if you aren’t sure, we are here to help. At 616 Realty, we’d love to help you with whatever real estate needs or questions you might have. Don’t hesitate to contact us at (616) 272-3707 and firstname.lastname@example.org.