Mortgage Updates | A Strong Sellers Market Continues and Buyers are Better Positioned to Purchase
The combination of low-interest rates, pent-up demand and lack of inventory have resulted in rising home prices, bidding wars, and quick sales --- all creating tremendous opportunities for sellers to sell for top dollar in record time.
At the same time, more homebuyers are prepared to purchase. According to Realtor.com, nearly two-thirds of homebuyers say that they have been able to save more money for their down payment due to the Covid-19 shelter in place orders in Spring.
Combined with low-interest rates, house hunters say they are strengthing their budgets and searching for homes in more expensive neighborhoods this summer.
Additionally, potential first-time homebuyers are getting support from a bill recently introduced in the House of Representatives called The First-Time Home Buyer Pandemic Savings Act. This proposed new bill will allow buyers up to $25,000 of Coronavirus related retirement distribution to be accessed tax and penalty-free, as long as it's used toward a down payment for a first home.
A home is one of the most important parts of an overall retirement plan. Moving money from a 401k into a home is simply moving it from one part of their retirement plan to another.
Bottom line - the Summer real estate market continues to move quickly, and now is the time for both buyers and sellers to make a move.