After what may seem the longest ever housing slump, we are finally seeing some great conditions after five, seven years that are leading to even greater results for countless Americans. There are many reasons for this increase in activity and today I wanted to share them with you. If you have been on the fence about buying or selling or if you know someone that has been contemplating entering the real estate market, consider the seven must-know factors below. In short, if you know someone that wants to buy or sell, now is the time.
Low, Low Cost of Borrowing
Never before in the history of our real estate industry have interest rates been as low as they are today. There’s no sign at least for now of them going up and what these low rates translate to – especially when combined with other factors mentioned below, is an unprecedented opportunity for buyers and sellers.
There’s Plenty of Money for the Taking
In the past several years, banks have been wary of lending and this was particularly during a time when the housing finance industry was dealing with several scandals and subsequent settlements. But now, banks are finally able and willing to lend again, allowing deserving homebuyers the chance to finance their homes.
Low Home Prices Make Buying Better
In a traditionally stronger renters’ market, we are finally looking at buying being more affordable. This works really well in the favor of sellers that have previously been unable to sell in the wake of our recession.
Fewer Homes, More Demand
Inventory is systematically dwindling downward, causing a stronger demand for homes across our marketplace. Not only is this due to increased sales but also the number of REO and bank-owned properties is going down.
Plenty of Buying Power Floating Around
There are a large number of first-time homebuyers on the prowl at this time. With prices edging down, interest rates already at their record setting lows and inventory declining – buyers have a lot of buying power and they are out there to exercise it.
Comparable Sales Are Working Favorably
After many, many months of not-so-favorable comparable sales and appraisals, we are finally seeing numbers that work in sellers’ favor. Homes are being appraised at higher values and other sales indicate higher sales prices – leading to a good result for sellers getting top dollar for their properties.
Economy Boost With Presidential Election
Historically an election year has usually posed a good environment in terms of our national economy. Better economic times, no matter how temporary they may seem, always point to increased activity in the housing market. This works in the favor of buyers and sellers; buyers will see more quality homes on the market and will have the money to spend to purchase those homes while sellers will enjoy increased buyers vying for their property.
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