As a real estate broker/owner of Welcome Home Realty Group I am constantly seeing new candidates for real estate agents in our office. Since Covid, I have seen an increase in new licensees.
I Blame Low Mortgage Rates
Dated: October 19 2020
There is a normal cycle of real estate to have buyer's markets and seller's markets.
For the last 2-3 years, when someone would ask me "what market we are in?"(buyer or seller), the answer was not always so obvious. I would have to explain supply and demand based on season and price point. Of course, if you get into the $500k + price points, you would have less buyers with affordability. You have a little slump in buyers and sellers in summer due to vacations planned and kids at home for summer break.
Well...throw all of that out the door!
I bet you've heard the housing market is white hot right now...well, I'm not going to deny it. It is a feeding frenzy! To say it is a seller's market would be an understatement if you are listed less than $500k. I could even reason the same theory if you are listed under $600k.
Seasonality? Who knows and who cares what month we are in at this point. I don't even know what day it is...
Let's think this through. The inventory of houses has been pretty low for the last 2 years or so. Couple that with some 4% interest rates - we had a pretty even market overall. Well, as soon as COVID 19 affected our daily activities - that created a delay in the Spring market when most sellers were waiting to list early March and April. After we came out of strict quarantine - buyers were chomping at the bit to buy and sellers were still reluctant to sell (who wants people in their house these days - especially strangers!?) Now let's multiply this entire situation with the lowest interest rates...EVER!
It's creating quite the seller's market. It's to the point where home values are rising at an exponential rate in a short amount of time. But buyer's don't care! They can afford it now with interest rates so low. As long as the appraiser gives the thumbs up - we're good right? Does that sound like 2003-2008 all over again?
Buyers - just be aware of the financial decisions you are making. Low interest rates are great and take advantage where you can. Don't be discouraged the first 1...2...maybe 3 or more times your offer doesn't get accepted. Just make strong offers that makes sense given the market and your own individual needs.
Sellers - take this market and run with it. You lucky ducks, you!
Surely, this market will not be this way for forever. We don't know what is going to happen and I look forward to following this market as it develops and molds into whatever 2021 has in store for us.
written by Kat Royer
Welcome Home Realty Group
Kat Royer is a graduate of Virginia Tech with a Bachelor’s degree in Hospitality and Tourism Management and minor in Real Estate. She worked for 7 years in operations and sales for a major internat....