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Have You Ever Seen a Housing Market Like This?

Have You Ever Seen a Housing Market Like This?

The year 2020 will certainly be one to remember, with new realities and norms that changed the way we live. This year’s real estate market is certainly no exception to that shift, with historic highlights continuing to break records and challenge what many thought possible in the housing market. Here’s a look at four key areas that are fundamentally defining the market this year.

Housing Market Recovery
The economy was intentionally put on pause this spring in response to the COVID-19 health crisis. Many aspects of the common real estate transaction were placed on hold at the same time. Thankfully, technology and innovation helped the industry power forward, and business gradually ramped back up as shelter-in-place orders were lifted.

The result? Total transformation of the market from rock-bottom lows to exceptional highs. Today, the housing recovery is being called truly remarkable by many experts and is far exceeding expectations. From pending home sales to purchase applications, buyers are back in business and homes are selling – fast.

According to the Housing Market Recovery Index by realtor.com, the market has surpassed pre-pandemic levels, and has regained the strength we remember from February of this year (See graph below):Have You Ever Seen a Housing Market Like This? | MyKCM

Record-Breaking Mortgage Rates
Historically low mortgage rates are another 2020 game-changer. Today’s low rate is one of the big motivating factors bringing buyers back into the market. The average rate reached an all-time low on multiple occasions this year, and it continues to hover in record-low territory.

When rates are this low, buyers have a huge opportunity to get more for their money when purchasing a home, something many are eager to find while continuing to spend more time than expected at home this year, and likely beyond.

Continued Home Price Appreciation
One of the key drivers of home price appreciation this year is historically low inventory. Inventory was low going into the pandemic, and it is still sitting well below the level needed for a normal market. Although sellers are slowly making their way back into the game, buyers are scooping up homes faster than they’re coming up for sale.

This is a classic supply and demand scenario, forcing home prices to rise. Selling something when there is a higher demand for what is available naturally bumps up the price. If you’re ready to sell your house today, this may be the optimal time to make your move. As Bill Banfield, EVP of Capital Markets at Quicken Loans, notes:

“The pandemic has not stopped the consistent home price growth we have witnessed in recent years.”

Increasing Affordability
Even as home prices continue to rise, affordability is working in favor of today’s homebuyers. According to many experts, rates this low are off-setting rising home prices, which increases buyer purchasing power – an opportunity not to be missed, especially if your family’s needs have changed. If you now need space for a home office, gym, virtual classroom, and more, it may be time to reconsider your current house.

According to Mortgage News Daily:

“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”

Bottom Line
With mortgage rates hitting historic lows, home prices appreciating, affordability rising, and the market recovering like no other, 2020 has been quite a year for real estate – perhaps one we’ve never seen before and may never see again. Let’s connect today if you’re ready to take advantage of this year’s record-breaking opportunities.

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Buying A Home: Why You Should Be House Hunting NOW

Buying a home is one of the biggest purchases you will make in your lifetime. Many buyers jump headfirst into house hunting without any real guidance or understanding of how the housing market works. At Sunbelt Real Estate our dedicated agents are eagerly anticipating your call, armed with knowledge and insight into the real world of home-buying. If you’re considering buying your first home, a vacation home, or just exploring your options for the future, we strongly urge you to do it with the help of our qualified professionals who wants only the very best for our clients.

Reasons to Buy in Today’s Economy

  • Appreciation: House values are higher than ever in today’s economy. Historically speaking, values have risen at a rate of 5.2% yearly but in most recent years, values are rising at an astronomical 7%, which in turn will create a higher demand for housing in the very near future, thus raising the equity in your home.
  • Low-Interest Rates: Due to the economic crash, home loan rates are at an all-time low, making it easier than ever for you to get into a new home.
  • Zero Down Options: Tying into low-interest rates for mortgages are zero down options that many financial institutes now offer. If a zero down option is not available, many places are still offering lowered down payments, such as 1% or 3%, contrary to the popular belief that 20% down is required.
  • Bad Rental Market: With prices of rentals soaring, what better time to buy your own home? Paying on your mortgage instead of paying someone else’s mortgage just makes more sense logically and financially. Rental prices are expected to go up even more in the next few years, depending on your area, whereas with a fixed-rate mortgage, you pay the same amount every month!

Tips and Tricks on Buying

  • Hire An Agent: Agents can effectively choose houses that suit your individual needs without wasting your time; short sale properties and the like can be a headache to home buyers and skilled agents will know what properties to look at to avoid wasting your time.
  • Get Loan Pre-approval: Having financing in places makes it possible for you to put in an offer on a home you love immediately without the worry of having someone else put in an offer first. This is not always necessary but it can alleviate stress on you, the homebuyer, and many sellers who often times won’t entertain offers from individuals without assurance that the buyer can get a loan.
  • Negotiate Offers: Negotiating is a big part of buying a home and with the help of a real estate agent, the process can go smoother than ever. You may need to negotiate up if there are many offers on a property or negotiate down if the seller’s asking price is too high for the area or if the home had issues that would need to be tended to upon purchase.

Why Sunbelt?

Sunbelt Real Estate has been helping home buyers find their perfect home for the past 20 years. Sunbelt serves the Connecticut area into New York’s Metro area, as well as Florida and international areas. With a vast knowledge of many different areas and properties, Sunbelt is sure to satisfy your needs and provide you with a purchase you can be happy and confident in. Contact us today so we can help you move into the home of your dreams!

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See V-Tour of 52 Severance Dr, Stamford CT – Spacious, Upscale Finishes, Move-In Ready

Well maintained Expandable Cape in the heart of the boarder-line between Newfield and Springdale –Living-room, Eating Kitchen , 3 Bedrooms, Bth, Gar, Full Basement.Hardwood Floors(1St). Baseboard Heating with 2 Zones . The 2nd Floor is expandable. Large Screened Porch. Nice backyard with Mature Trees. Excellent location to raise a family on a quiet street of this magnificent city neighborhood.

Bedrooms: 4  Bathrooms: 3 Full
Square Footage:  above grade 1,915 and below grade 627; total 2,542
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A Real Estate Pro Is More Helpful Now than Ever

A Real Estate Pro Is More Helpful Now than Ever
~A recent study shared by NAR notes that both buyers and sellers think an agent is more helpful than ever during the current health crisis.
~Expertise and professionalism are highly valued and can save buyers and sellers time and effort along the way.
~If you’re thinking of buying or selling a home this year, let’s connect to be sure you have a trusted professional on your side.

 

Aspectos destacados:
~Un estudio reciente compartido por NAR señala que tanto los compradores como los vendedores piensan que un agente es mas útil que nunca durante la crisis de la salud actual.
~La experiencia y la profesionalidad son muy valiosas, y pueden ahorrar tiempo y esfuerzo a los compradores y vendedores en el camino.
~Si usted está pensando en comprar o vender una casa este año, vamos a comunicarnos para asegurarnos que tiene un profesional de confianza de su lado.

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