What a difference a few months make.
Just this spring, we seemed to be entering a buyer’s market. Demand was receding, home price growth was slowing, and more and more homes were being listed for sale.
But this is not so today.
Home prices are heating up again. The average price of homes sold this May rose 3.6% from a year earlier—the biggest gain in seven months.
Demand is up, too, with more buyers showing up for viewings.
And the supply of homes remains very tight, particularly at the lower end of the market.
So what changed?
It’s simple: Mortgage rates have dropped steadily since April, and are currently at the lowest levels in a year and a half. In fact, the 30-year fixed mortgage rate is just 0.5% higher from the all-time low they reached in 2012.
This has improved affordability, gotten more buyers interested in making a move, and caused the market to heat up once more.
All of this is good news if you’re looking to sell.
Right now, demand outstrips supply so much that if you were to put your home up for sale, you could still sell quickly and for top dollar.
So if you have been thinking of selling your home, it might be smart to seriously consider doing so right now. This current situation won’t last long.
Mortgage rates are likely to start trending up once again in the coming months. The Mortgage Bankers Association predicted an increase up to 4.4% through the rest of the year. For reference, that’s the same rate we saw a few months ago when it seemed we were entering a buyer’s market.
For another, looming housing and rental reform could impact both the supply and the price of homes on the market. It’s too early to say anything conclusively at this point, but it’s important to remember that the main goal of all proposals for housing reform is to make housing more affordable.
That’s why now is such a golden moment in case you’re considering selling. In case you’re curious where you stand, you can find out what your home is worth in the current market, based on recent Raleigh sales:
Enter your home address here to find out what your home is currently worth
And if you really want to get the process started while this golden moment lasts, give me a call at (919) 412-3475. I’m here to help.