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ShareAs different states gradually start to ease lockdown restrictions, data indicates that the real estate industry is starting to build some momentum again. After the plans of many homebuyers were put on hold by the health crisis, what would have been a busy spring for the real estate industry is now shifting to the summer.
In 2020, summer has replaced spring as the prime real estate season. Moreover, according to Google Trends, the search term “real estate” rose from 68 points to 92 points between the middle of March to the start of June. This indicates that homebuyers are beginning to get active in the market again.
The Opportunity for Buyers
Another prominent reason why buyers are returning to the market – despite stay-at-home orders and forced unemployment – is due to mortgage rates that are at an all-time low. Yes, the average rate on a 30-year loan has fallen to 3.13%, which is the lowest it’s fallen since Freddie Mac started tracking the rates in 1971.
With states gradually easing lockdown restrictions and long-term mortgage rates being so low, buyers now have more incentive than ever to invest in a home this summer season.
The Opportunity for Sellers
While mortgage rates have hit an all-time low, buyers still face the challenge of finding a home at a time when there’s a shortage on the market. During the lockdown, many sellers took their homes off the market due to the panic and uncertainty caused by the pandemic. However, this month we saw an increasing number of homeowners put their house up for sale. Still, the current inventory is well below compared to what it was at this time of last year.
Considering the shortage of homes for sale nationwide, it’s safe to say that it’s a seller’s market right now. So, if you really want to sell your house, now may be the best opportunity.
The Bottom Line
This summer, a turnaround of the real estate market is very much on the horizon, offering opportunities to both sellers and buyers. As the economy shows much-anticipated signs of recovery, now may be the best time to evaluate your options.
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