Our market is changing, but you can take advantage of it.
Here are three important changes taking place in our market and three accompanying tips to help you take advantage of these changes:
Change #1: Interest rates have dropped compared to last year. In April of 2019, interest rates hovered around 4.2%, and everyone thought they wouldn’t get any lower than that. Now, though, they’ve dropped all the way down to 3.2%. They’re starting to creep back up, but they’re still historically low.
Pro Tip: Do your part to lock in a low rate. Just because you get approved for a house doesn’t mean you’ll get the best interest rate. Interest rates are predicated on several factors, but two of the most important are debt ratio (how much debt you have) and credit score. To lock in a low rate, the best thing you can do is improve your credit score and decrease your debt.
Change #2: The peak listing season has shifted. Normally, new listings steadily increase from January to May—the peak month—and then slowly taper off. Due to COVID-19, though, the peak season has now been delayed to June through July. Afterwards, listings should once again taper off.
“It’s not timing the market; it’s time in the market.”
Pro Tip: Don’t wait until May to list your home. In a traditional market, many Realtors advise their clients to list in May, but I recommend listing in February or March so you can beat the incoming rush. This will ensure that you have the best home selling options available.
Change #3: The year-over-year median price has increased. Over the last year, it’s gone from $235,000 to $265,000. This is a pretty steady increase, but we don’t know what will happen in the future.
Pro Tip: The best time to buy a house is whenever you can. The housing market will always increase over time. For example, if you bought a house for $250,000 with a mortgage of $1,500 per month, you’d generate $50,000 worth of equity in just five years. If you rent that same home for $1,500 a month for five years, you’d only end up paying someone else $90,000. As the old saying goes: It’s not timing the market; it’s time in the market.
If you have questions about today’s topic or have any real estate needs at all, don’t hesitate to reach out to me. I’d love to help you.
Also, if you’re a past client, don’t forget to sign up for our upcoming Zoom bingo night on July 16 from 7 p.m. to 9 p.m. We have a ton of prizes to give away, so we hope to see you there!
