Now is the Time to Buy:
Low Inventory and Low Interest Rates
Real estate has taken a hard hit along with the economy the past couple of years, with varying inventory and interest rates fluctuating often. This past quarter has shown an improvement in low interest rates as well as inventory. As sales rise, prices rise along with them, opening up the opportunity for growth in real estate.
Lower inventory rates are better for the market. When the market was struggling, there were too many houses for the level of demand. Now that the inventory rate is lowering, more people are purchasing real estate which will cause an increase in home pricing, but only modestly. Lower inventory also pushes people to widen their budget and expand their home search to new areas they weren’t considering before. 51% of buyers started looking in other areas because of the lower inventory, and 34% of buyers said they were willing to increase their budgets.
Inventory levels haven’t been as low as they were for February since 1985, with the average days on the market up slightly. There have been more property closings in February than in the previous month. Purchasing a home is a bargain compared to renting because houses are roughly 30% below their peak prices.
Interest rates are lower, with a national average of 3.53%. As the economy grows, interest rates will stabilize. Lower interest rates help new home buyers and bad credit owners get the money they need and be able to afford the payments on the real estate property. Borrowing costs are down 20% and mortgage rates are at an all-time low. As the year progresses, interest rates are expected to stay low with the inventory levels.
With lower interest rates and lower inventory, now is the time to jump into real estate and buy. This year will continue to make improvements in the real estate market, with more buyers and lower inventory to make prices rise moderately.
About the Author:
Florida Realty Group is pleased to bring you this informative article. They primarily specialize in luxury homes, condominiums and townhomes located throughout south Florida. Florida Realty focuses largely in Fort Lauderdale Real Estate and Coral Springs Real Estate areas.
If you are considering buying or selling a Seattle area home, give us a call, we would love to talk with you today.