Last year was surprisingly good for
sellers but challenging for buyers. Demand for homes outstripped supply, prices
rose, and many buyers found themselves bidding against other buyers.
Market Conditions
Now
What’s the market like now? On the
plus side for buyers, mortgage rates are lower than this time last year. The average 30-year fixed rate is 2.73%,
compared with 3.47% one year ago, according to the Federal Reserve Bank of St.
Louis. The downside for buyers continues to be low housing inventory. Montgomery
County had 2,423 active listings this January, compared with 5,492 last January.
New listings in the county this January
totaled 1,068, compared with 1,256 last year.
Many buyers who didn’t find a home
last year are likely to jump back into the market, adding to Spring demand. We’re
already seeing homes sell quickly. In Montgomery County, the average days on
the market this January was 37, compared with 65 last January.
Advice for Buyers
Get Pre-approved—If
you plan to buy this Spring, start by getting pre-approved for your mortgage. You’ll
need to provide a mortgage pre-approval letter along with your offer, and with
homes selling quickly, you should have it ready to go in advance.
Be Realistic About
Prices—If prices
in your preferred location are higher than you expected, you may need to revise
your expectations or explore other areas where housing is less expensive and
you can buy a larger, more updated home.
If You Have a Home to
Sell—If you need to sell your home first, look into temporary
living arrangements so you’ll have a place to go once you sell your home and
before you can move into a new one. Buyers
without a home to sell or who can purchase without selling their current home
are in the best position to get their dream home. Sellers will usually consider
a home-sale contingency only if they can’t find a buyer without one—an unlikely
scenario in today’s market.
Although early indicators favor
sellers, the year may still offer surprises if homeowners who have been hesitant
to sell finally put their homes on the market, increasing inventory and in turn
making life easier for buyers.
Housing market
statistics from BrightMLS, and interest rate data from the Saint Louis FED,
both as of 2/11/21.
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When Searching for a Home
If
you’re planning to buy or sell a home, contact Annette Nelson at (610)
247-7892 or annette@preferredhomes.com
#realestate #housing #Montgomerycounty #mortgagerates
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© 2021 by Annette Nelson. All Rights Reserved.
