We’re in the middle of a global pandemic, so why booming housing market? After all, the economy is down, and countless Americans are struggling with their finances. After all, the economy is down, and countless Americans are struggling with their finances. Let’s take a closer look at several of the many reasons the housing market is so hot during these unprecedented times.
An Inventory Shortage
There is a significant shortage in the number of homes on the market, it is a booming housing market. The National Association of Realtors (NAR) found that there are one-third fewer homes for sale today than a year ago. This information is startling considering inventory was already on the low side back in early 2020. The pandemic has led many sellers to either pull or delay their listings.
Low Interest Rates
Mortgage rates are lower than ever before. Homebuyers are taking advantage of this, especially those who could save money or had continual work during COVID-19. Believe it or not, the average interest rate on a 30 year home loan is 2.77%. Just one year ago, this rate was 3.6%.
After spending months in quarantine at home, Americans discovered the importance of our homes. Many buyers who put their home search on pause at the start of the pandemic are now back at it. These new buyers continued to thrive during the pandemic and are longing for a new home, in the booming housing market.
Tips for Buying a Home in a Booming Housing Market
If you’d like to buy a home soon, keep these tips in mind:
- Prepare to Make a Quick Offer: You won’t be able to wait to make an offer. Therefore, make sure you can afford the home, are pre-approved for a mortgage loan, and have enough for a down payment so you can act quickly.
- Work with an Experienced Agent: A reputable agent can inform you of homes that meet your criteria before or as soon as they hit the market.
- Be Careful with Bidding Wars: Ideally, you’ll want to make the first competitive offer and secure the house. In a hot market, however, you may find yourself in a bidding war. Don’t bid more than you can comfortably afford and walk away if necessary.
Consult Your Mortgage Professional
If you desire to buy a new home in the booming housing market of 2021, now is the right time to file your 2020 taxes and apply for a mortgage loan. Your mortgage professional can help you pre-qualify, so you are ready to work with a realtor and find your new home.
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