Winter Real Estate Trends

This has been a busy year in real estate to say the least, and from all reports the trend will continue during the winter months. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), notes, 

“It will be one of the best winter sales years ever.”

While normally there is a slowdown during winter months, this year may prove to be an exception. Low mortgage rates and the pandemic have impacted the market in a big way.

Mortgage Rates

While today’s historically low mortgage rates are expected to remain low, they may not be this low for much longer. The winter season could be the last chance for homebuyers to secure such low rates. In a recent article, Bankrate, a personal finance company, explained: 

“If you’re looking to buy a home…expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.” 

But as long as we do see low interest rates, we’ll see buyers continue to search for their dream homes. 

The challenge in the real estate market this year has been and still is the lack of homes available for sale. All eyes are on homeowners to see if they will sell this winter or wait until spring. Danielle Hale, Chief Economist for realtor.com, says it is best for sellers to capitalize on this moment sooner rather than later:

“We currently see buyers sticking around in the housing market much later than we usually do this fall. If that trend continues, we will see more buyers in the market this winter, too. So, this winter is likely to be a good time to sell.”

Pandemic Impact

While the pandemic continues, Americans are re-evaluating their homes, floorplans, locations, and needs. Some people need more room, while others need less. Distance learning has made it important for many to reconfigure their living space. Remote work has made it possible for many to move. A large number of renters and homeowners are thinking about moving, especially while today’s mortgage rates are so low. A recent study from Upwork notes:

“Anywhere from 14 to 23 million Americans are planning to move as a result of remote work.”

Keeping Current Matters stated in a recent article:

“With buyers ready to stay active this winter, sellers who want to close a deal on the best possible terms shouldn’t wait until spring to put their homes on the market.”

So, while many folks are looking to hunker down and hibernate this winter, it may be a very active season for those hoping to take advantage of the current market trends.

 

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.