During a typical year, the housing market goes into hibernation during the winter. However, we all know there's nothing typical about 2020 and the housing market is no different. As 2020 closes out, the home selling market is hotter than ever and shows no signs of slowing down.
"Between the colder weather and the holidays, home sales typically drop off in the winter. But not this year," said Kazantzis Real Estate Owner and Broker Andrea Kazantzis. "Because of low interest rates, low housing inventory, and a change in what people are looking for in a home, we're seeing a robust seller's market."
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As we head into a second-round of shutdowns or "pauses," buyers don't want to wait until spring to find new digs.
"People have been working from home and distance learning for months now. However, in the spring they could go for walks or sit outside," Kazantzis said. "With colder temperatures, cabin fever is sure to be more of an issue and is driving people to upgrade."
And since many people are going to be able to continue to work from home, even after the pandemic ends, lots of prospective buyers are no longer tied to a specific area.
Also fueling the buying spree - historically low interest rates. Interest rates on a 30-year fixed-rate loan were 2.8% as of Oct. 22, according to Freddie Mac. This makes it cheaper to borrow money and gives the buyer more purchasing power.
Because of the demand, housing inventory is low. That means sellers will be able to list at a higher price than they would have just a few months ago.
Across the country, median home listing prices jumped 11.1% in September compared with a year ago, to $350,000, according to realtor.com. Price per square foot increased by 13.9%.
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"Prospective sellers likely won't have to keep their home on the market for months on end," Kazantzis said. "Homes are selling quickly. So when a seller would normally wait until spring, they are able to sell now because the buyers are there."
Whether your looking to sell or to buy, Kazantzis Real Estate has a team of experienced agents ready to assist you!