46 | Fall 2020
G O O D N E I G H BO RS
Understanding the Real Estate Market During COVID-19 EMILY MERKLEY association executive, Cache Valley Association of Realtors
AT A TIME when information is abundant and the world seems to be in constant, chaotic motion, it’s important to ground yourself and find stability. When it comes to making big, life-changing decisions, like buying or selling a home, it’s important to search out and use reliable information and resources that will allow you to make fact-based decisions. With the help of an experienced REALTOR® who understands the local and national market movement, both home sellers and buyers have found themselves in a position to benefit during this time of continuous flux. These last six months have led to record-low mortgage interest rates, which has flooded the home-buying market with potential buyers. Such low rates have made the dream of homeownership more realistic and accessible. A low interest rate decreases the amount of interest to be paid on a typical 30-year mortgage, making a home more affordable on a month-to-month basis, while simultaneously saving thousands of dollars over the life of the loan. This has given buyers greater buying power, enabling them to purchase a home that before might have been out of reach. While many buyers are looking to cash in on these low interest rates, the selection of available homes is limited. Housing inventory is low, which creates a great opportunity for existing homeowners looking to possibly sell their homes. Low inventory and an ongoing pandemic has caused an acceleration of home prices, growing by 8.5% in July on a national scale, and listed homes are not sitting on the market for as long as they were last year. Many sellers, with desirable homes priced competitively, are seeing multiple offers and netting more on the sale than expected. These historically low interest rates make it a great time for buying a home, and with home sale profits growing, it’s also a great time to leverage hard-earned equity and make a move. Contact your local REALTOR® today to better understand your position and take those next steps with confidence.
