Winter is typically a slow season for real estate transactions. With the holidays, family gatherings, and cold weather, the housing market usually plunges into hibernation, with sellers and buyers putting their real estate plans on hold until spring. However, this year's winter real estate market is shaping up to be different from what we're used to. The coronavirus pandemic saw the housing market grind to a near halt. But with the economy recovering, the 2020 holiday season could be an excellent time to sell your home. Here are some of the reasons why our real estate agents believe a holiday home sale could be more likely this year.
- There's Pent-Up Buyer Demand
When states issued lockdowns and stay-at-home orders in the "silent spring" of 2020, the real estate market nearly screeched to a halt. Several months of real estate busy season were delayed. But that was temporary as buyers and sellers started hitting the market again after the lockdowns. Since then, there has been a pent-up demand to buy homes and make up for the lost time. Eager home buyers are sticking in the market much later than they usually do in the fall. If this trend continues, there will be more people looking for a home in the winter, too. This presents a great opportunity for a holiday home sale.
- People Are Looking to Upsize Their Homes
Many people are in the market purely because they want bigger homes. With continued telecommuting and virtual schooling, many have realized that their homes are no longer big enough to accommodate all family members. And as the temperatures drop, it won't be possible to escape to the back patio or the shed for video calls. There's great emphasis on having enough space and being happy with one's home. If remote working will be the new normal even after the COVID-19 pandemic, people might realize they can buy bigger homes farther outside the cities. This is the time to add your home to the list of North Canton homes for sale on the market if you live in a remote area.
- The Number of Homes for Sale is at a Record Low
Although there's a high demand for homes, housing inventory is lower than usual. The number of homes for sale in September declined 39% over last year. Even with some improvements seen in October and November housing inventory will still be low. This will help ensure that homes continue to sell quickly and at higher prices. Because buyers won't have an endless list of Akron homes for sale to choose from, they'll have no time to wait and talk about it. The overall advantage is with the seller.
- Sellers Stand to Make a Killing
The high demand and low supply are bound to drive up home prices, creating an opportunity for sellers to command a higher asking price for their properties. Home values and sales prices remain strong. And since there's high buyer competition for homes that are available, a seller can get a nice, big, high-priced offer on their home. The biggest challenge is dealing with multiple offers at a go.
- Mortgage Interest Rates Are Low
While buyers will be navigating a seller's market, it's not all bad news for them. Even with high home prices, mortgage interest rates are very low and can allow them to save a ton of money. As of October 22, the average interest rate on a 30-year fixed-rate mortgage was 2.8%. Even before the coronavirus crisis, real estate professionals and economists had predicted that mortgage interest rates would not rise above 4% in 2020. Record low-interest rates give homebuyers purchasing power and allow them to pay slightly less on their mortgage each month. Buyers who might have waited will want to start looking for a home this year.
At DeHoff Realtors, we can help you prepare your home for sale and brew up a great deal. Contact us today to get started.