Traditionally, spring and summer are hot seasons for homebuying. Warm weather, longer days, and summer vacation provide plenty of opportunities for those looking to make a move. However, this past spring didn’t go quite as planned. Fortunately, summer 2020 real estate is expected to do a little better
Will Summer 2020 Real Estate Make a Comeback?
National closures and stay-at-home orders caused many would-be buyers and sellers to push pause on their real estate goals, leading to a somewhat lackluster spring market. However, as states begin to reopen and people to return to work, signs indicate that summer 2020 could be the new spring for real estate.
Purchase applications are increasing
Despite a drop in both buyer and seller activity earlier this spring, the Mortgage Bankers Association (MBA) notes that home purchase applications have increased for 5 consecutive weeks. Government purchase applications, including FHA, VA, and USDA loans, are actually 5% higher than they were a year ago.
Searches are on the rise
Buyer applications aren’t the only area seeing increased activity—Google Trends notes that use of the search term “real estate” increased from 64 points in the week of March 15 to 100 points the week of June 14 in North Carolina. This might indicate increased interest in online searches, video tours, real estate agents, and more.
Mortgage rates are near historic lows
For buyers, 2020 presents an incredible opportunity to take advantage of some of the lowest interest rates in recorded mortgage history—nearly 50 years. In April, rates reached their lowest point ever, 3.23%, and have climbed only slightly in the past few weeks. Currently, they sit around 3.4%.
Inventory is incredibly low
If you’ve been hesitating to list your home, you might want to reconsider waiting. Social distancing measures and business closures led many sellers to pull their homes from the market, leaving a depleted inventory—and very little competition amongst sellers. With the number of listings down and the number of buyers up, sellers are in a good position to list for a high price.
Real Estate in the Triangle Is Picking Up Again
After a bit of a slow start to 2020, the Triangle real estate market is starting to speed up again. Much of the buying or selling processes—from searches to paperwork—is still being done online, but in-person showings and meetings are permitted, provided safety precautions are taken.
Whether you’re thinking of buying or selling a home in the Triangle area, summer 2020 might be an advantageous time to make a move. Contact Linda Craft & Team at 919-235-0007 to learn more about how we can put our 350+ years of combined experience to work for you.