Lending Tree recently did a survey on 1,000 potential buyers. 53% are likely to buy a home within the next year. The pandemic has not changed the plans of these homebuyers. The survey results below show the reasons why people will be buying within the next year:
Let’s break down why these are a few of the key factors motivating buyers to actively engage in the home search process, and the corresponding wins for sellers as well.
1. Low Mortgage Rates
The main reason most are looking to purchase a home is to take advantage of the historically low mortgage interest rates. The average rate today is 3.21% and if you are to purchase points you can buy down the rate to 2.5%. The lower the rate the more affordable a home is to buy. Low rates also mean higher buying power.
If you are thinking about buying but not sure if you qualify, contact Mortgage Broker Iliana Tegov at Voget Financial Services at 954-614-9000. If you don't qualify for a mortgage now, she will run all your information and be able to make a plan for you.
Sam Khater, Chief Economist at Freddie Mac said:
“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.”
2. Reduced Spending
The one good thing that came from the pandemic is that most people have been able to cut down on their expenses and save money while sheltering in place. Parents are working remotely and have fully reduced spending on gas, car maintenance, social events, lunch, etc. As a result, families have saved for down payments and closing costs which makes the purchase of a home more realistic.
3. Re-Evaluating Their Space
Spending time at home has made people realize that they need more space. Whether it is office space to work remotely or a bigger yard for the kids, more space is needed.
What does this mean for buyers and sellers?
Summer is the new busy season in real estate. As phased reopening begin, buyers will be taking advantage of their savings and the low interest rates. If you are planning on selling, now is the time. Inventory is low and there is a demand for homes. Your home may be the perfect space that someone is looking for.
If you are thinking of buying or selling - or both - contact the South Florida Real Estate Experts at Prestige Waterfront Realty at 954-830-7000. Take advantage of the market and the low interest rates while you can. We can help you every step of the way.