A recent survey by Fannie Mae reveals a growing confidence and positive sentiment among consumers thinking about the real estate market.
By an increase of four percentage points compared to this July, respondents agree now’s the time to purchase a home. On the other side of the fence, the percentage of people who said they’d hold off on buying a home decreased by three percentage points between July and August.
Homeowners remain optimistic about their economic future in real estate. Nearly 75% of them said it was an optimal time to list their home. The positive sentiment filtered into other realms. More than half of the respondents held positive expectations about mortgage rates, which remain low. About 53% of those who took the survey believe that interest rates will fall again.
Not surprisingly, the August real estate survey showed that more than 40% of folks believe home prices will continue to go up through 2021. Finally, more than 80% of survey takers convey little to no concern about losing their jobs over the next 12 months.
Bottom line is the real estate market remains an attractive financial avenue. Through low interest rates and powerful loan programs, home ownership may be closer than you think.
Let’s investigate this a little more and why the market may now be shifting away from a seller’s market to a buyer’s market.
According to recent reports, home appreciation has cooled since the spike we saw last year and earlier this year. As a result, the expectation is that the real estate market may cool in fall. In fact, in 43 of the largest 50 markets in America, appreciation has cooled. One reason for this is an increase in inventory, which has been on an exponential rise over the last several months. This combination also has resulted in price decreases with over 12% of listings seeing reductions before an accepted offer occurred.
Interest Rates Remain Low
While this slow-down in home appreciation is occurring, there is an intersection of interest rates remaining low. The Federal Reserve has indicated that the rates will remain low in the immediate future. Generally speaking, interest rates are hovering below 3%. Interest rates also were low in 2020, but the difference was home appreciation skyrocketing at the same. Today’s market is uniquely opening a window for homebuyers that we haven’t seen in a while: Cooling prices, rising inventory and low rates.
That could be a good recipe for anyone who is looking to enter the market! You never know how long it could last and how long interest rates will remain where they are.
Please do not hesitate to contact me for how to compete in this competitive real estate market. Email me at ky[email protected] or give me a call at 916.880.8059!
With nearly a decade of experience in the mortgage and real estate industries, I have a strong understanding of how to evaluate an individual’s situation and determine how to best meet their goals. My approach for California, Nevada, and Colorado current or future homeowners is to educate, advise and deliver a top-notch customer experience.
I’m committed to working for my clients as their mortgage expert, advocate, and partner in their journey toward purchasing or refinancing a home.