Friends and Clients —The recent surge in the real estate market has now offset the spring market losses.
This means it’s a great moment for anybody thinking of selling a home. However, it’s uncertain how long this will last. Let me give you the details
:1. Never-before-seen price levels
Sales of existing homes in October soared well past expectations, rising 4.3% compared with September and 26.6% annually.
More impressively, home prices jumped 7% in September year over year. That’s the largest annual gain in six years. Prices are now nearly 23% higher than their last peak in 2006. So what’s behind this surge?
2. Record-low supply
There’s an extreme shortage of homes on the market right now.
At the end of October, the last month for which we have complete data, there were just 1.42 million existing homes on the market.
That’s a 19.8% drop compared with October 2019. At the current sales pace, that represents a 2.5-month supply, the lowest on record.
Such limited supply is pushing up prices. However, there’s a second cause for the recent rise in home prices.
3. Urgent demand
Mortgage rates hit record lows 13 times this year. The 30-year fixed mortgage rate currently stands at just 2.72%, which is 0.5% lower than six months ago, and a full percent lower than one year ago.
Such low mortgage rates make homes more affordable, despite the rise in home prices. That’s why so many homebuyers are rushing in to take advantage.
So what does this mean for you?
Well, it means it’s a great moment to sell. Right now, you could sell quickly and at top dollar. However, it’s unclear how long it will last. More home sellers might enter the market to take advantage of current conditions.
More importantly, mortgage rates might bounce back up soon, making homes less affordable and curbing demand.
That’s why, if you’ve been thinking of selling, it’s worth at least investigating your options right now.
You can get started by getting an idea of what your home is worth in the current hot market. To do that, take a look at this home value calculator, which is based on recent Raleigh sales:
If you have any questions about potentially selling your home, give me a call at (919) 412-3475. I’m talking to both buyers and sellers around Raleigh every day, and I can help you make an informed and smart decision, whatever you decide to do.