This spring, mortgage interest rates fell to all-time historic lows, and now they are projected to remain low for the foreseeable future. This has created a huge incentive for investors—and for sellers who want to take advantage of high buyer demand.
What Does High Buyer Demand Mean for You?
If you’re thinking about buying or selling a home in Raleigh, you probably want to know how current market conditions affect your goals. A recent study by Freddie Mac shows that purchase demand activity (i.e. buyer interest) is up over 20% from a year ago and is at the highest it’s been since 2009. But what does this mean for you as a buyer or seller?
Inventory is declining rapidly
One of the biggest effects of this strong demand, coupled with pandemic-fueled seller hesitancy, is that inventory is rapidly reaching new lows. In fact, housing supply is nearly 20% lower than it was a year ago. Buyers are eager now, but lack of options may cause interest to wane.
Buyer competition is strong
High buyer demand often leads to an increase in competition, but in a low-inventory market, content between buyers tends to be especially high. Gaining any possible competitive advantage, like getting preapproved or working with a trusted agent, is crucial. You may also need to be prepared to act fast when you see a home you love.
Additionally, crafting a competitive and appealing offer is critical—making a good agent even more important to the process than ever before.
Sellers should sell quickly
As a seller, a high-demand low-inventory scenario is very ideal for selling quickly and landing a good price. Listing your home now, when you don’t have a lot of competition, likely means your home will get a lot of interest, provided you price and market properly.
The current market presents a great opportunity for sellers. However, it’s important to understand that even a desperate buyer won’t purchase an overpriced home, and no buyer will find a home that’s not marketed. In short, while this might seem like a good time to list without an agent, that’s definitely not the case.
There are perks for both buyers & sellers
Current market conditions offer opportunities for both buyers and sellers. Buyers who are willing to face a little competition can save thousands of dollars with record-low interest rates. And sellers who work to capture buyers’ attention could enjoy a quick turnaround time after listing. Either way, interest and activity in the market help to stabilize prices and aid in its recovery.
Ready to Make a Move in the Triangle?
If you’re thinking of buying or selling a home in the Triangle, Linda Craft & Team is here to help. Contact us today at 919-235-0007 to learn more about how we can put our 350+ years of combined experience to work for you.