It’s a Hot Market!

A recent Lending Tree survey of prospective buyers found that 53% of homebuyers are likely to buy a home in the next year, even amid the current health crisis. A June 16, 2020 article by Keeping Current Matters breaks down the reasons motivating buyers.

Low Mortgage Rates

Buyers are eager to purchase because mortgage rates are hovering near all-time lows. 67% of respondents in the Lending Tree survey said they want to take advantage of low mortgage rates. Sam Khater, Chief Economist at Freddie Mac states: “As the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery.”

Reduced Spending

Both renters and current homeowners have been able to save more in the last few months while sheltering in place. Expenses such as commuting, social events, eating out, recreational activities, and other expenses have been minimized for many people, so they have been able to save more for down payments.

Re-Evaluating Their Space

Spending more time at home, some with the prospect of continued remote work, has given potential buyers a chance to really evaluate their living space—from square footage, neighborhood—even the city they live in! 

With these three factors in play, it looks like the demand for housing will continue to grow this year, especially during summer months as more communities continue their phased approach to reopening.

In Granite Bay and surrounding areas, we are definitely seeing a lack of inventory. This situation is creating strong listing opportunities for those who wish to sell their homes. Realtors in the area are seeing a big surge of buyers from the Bay Area since Coronavirus and in many cases because of it. Buyers, on the other hand, continue to enjoy low interest rates. Though it is not necessarily easy to get a loan (many lenders are requiring stringent qualifying terms), those who qualify have strong buying power. As always, it is strongly recommended to work with a real estate professional who knows the particular market in which you wish to buy or sell.

 

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 16 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustingroup.com.