During the uncertainty of these times, many buyers and sellers think about whether it is the right time to join the market. Usually, the warmer months are the prime time to shift houses. As the months get increasingly colder, demand for homes continue to increase while supply for new houses fall. This results in a significant increase of home prices. If you are looking for a property or thinking of selling your home, read on to find out more about how the increase of home prices may affect you.
The prices of property in the market depends on the demand and supply. For instance, the low buyer interest during the 2008 housing market crash caused property prices to plunge. However, today prices are steadily rising due to a low supply and low interest rates. This may be good news for owners intending to sell their homes. Buyers on the other hand, need to look out for a few things.
Why Property Prices are Steadily Increasing
Buying property is high on many Americans’ priority list despite the recession and pandemic. Mortgage rates are at an all-time low, enticing buyers to purchase homes. However, with a collective increase in purchasing interest, prices of homes have jumped.
Lower Interest Rates
With the current low interest rates, many buyers are tempted to take advantage of it and buy a house that is usually more expensive. However, interest rates have started to slow down and decrease since the end of 2019, and this means that buyers could find themselves in a bidding war and have to make certain compromises in purchasing their property.
Despite the increase in home prices, it is still achievable to purchase a new property. With mortgage rates dropping below 3 percent, potential buyers have an even stronger purchasing power. If you are looking for new home, you should consider engaging a professional agent to help you navigate the real estate world. With their knowledge and expertise, they will be able to secure the best deal for you.
Sellers can Expect to Find Buyers Quickly
Sellers are in a great position today. For the past few years, demand for new homes has exceeded the supply. With today’s pandemic, demand has been pushed up even more. Take advantage of the increase in buyers to list your home for sale today in order to get the best deal from your potential buyers. Even though there is a recession, property prices have been steadily increasing, with prices jumping at least 2 percent in May to July. Even if you are not interested in buying or selling your current home, it could be a good idea to find out the value of your home so that you are aware of how much your home is valued at.
If you are looking to buy or sell your home today, feel free to contact NJLux. Our experienced agents will be able to advise you on the best steps to take in finding a new property to settle down in or secure the best deal for the property you are selling.
