With the surprisingly hot real estate market taking place throughout most of the COVID-19 pandemic, home prices from coast to coast have skyrocketed – and coupled with historically low interest rates, no one knows when the seller’s market will slow down.
According to a recent study by CoreLogic, home prices nationwide – which includes distressed sales – grew by more than 17% between June 2020 and June 2021, with more than half of the sales fetching over their asking price.
But how long will this buying frenzy last…especially as new Coronavirus variants continue to make their way to – and through – the United States?
If this summer is any indication of what to expect going forward, home sellers could still stay in the driver’s seat for a while longer. In fact, as supply and demand pressures remain, and home construction costs continue to rise, June 2021 showed the highest annual growth rate in over four decades.
In addition, the increased need for labor (and in turn, more workers generating an income again), 73% of consumers in the CoreLogic survey stated that the COVID pandemic and its initial stay-at-home orders helped them to save more money. And this has equated to more cash reserves available for down payments and other associated moving expenses.
While demand and home price gains may eventually level off over the next 12 months, though, now might be the ideal time to take advantage of cashing in on the sale of your current residence, as well as locking in a more affordable, low-interest, mortgage payment.
If you’re considering a move in the near future, contact us and we’ll help you narrow down your search for the ideal next home. And if you also have a property to sell, we can provide you with details on finding buyers quickly and setting the right listing price.