As economy starts to thaw due to the drastic changes brought about by the pandemic, the housing market may be beginning a shift as well. Rates have dipped and listings have begun to inch higher, indicating that potential buyers are on the rise again.
The dip in interest rates have made mortgage payments more affordable, making it easier for potential home buyers to afford a home loan. In addition, shrinking housing listings have increased competition among potential buyers, driving up prices in the process. This surge is mainly encompassed in the larger cities across the country.
Interestingly, this increase in listings have been mostly in the higher purchase price ranges, with the number of available listings for less expensive homes remaining relatively flat. This indicates that buyers with higher financial means are the ones driving this surge in housing listings.
However, of note is the fact that home prices are still trailing behind those of a year ago, indicating that we are still in a buyer’s market. This together with the lower interest rates are giving prospective buyers the opportunity to lock in good deals in the housing market.
In addition, the extra liquidity being injected into economy through unprecedented stimulus packages from the government might be responsible for the increasing household disposible incomes which is further bringing buyers further back into the housing market.
It remains to be seen whether this surge in the housing market is the real deal or simply a bit of natural thawing before things dip back down again. Some industry analysts and economists are cautioning potential buyers from getting carried away as there are still a lot of unknowns about the long-term economic outlook.
Nevertheless, if you’re looking to buy a home, now might be the perfect time for you as interest rates are low and the competition for available listings is increasing. It might be the perfect opportunity to lock in a good deal now before things pick back up and turn back to how it was before the pandemic.