The best time to sell or buy is TODAY!
As we enter into week six of the COVID-19 crisis, we are beginning to see a steady increase in real estate activity. Nationally, mortgage applications jumped 12%, showing signs that consumer confidence is returning. Locally in Southern California, we have seen an increase in NEW escrows week over week since the end of March. We have embraced our “new normal” by utilizing secure technologies and taking the necessary precautions to keep our clients safe and business moving forward.
The bottom line: the best time to sell or buy is TODAY!
There are tremendous opportunities for both sellers and buyers.
- Inventory remains low, home values remain high and sellers are seeing well-qualified and highly motivated buyers confidently making offers.
- Less competition in the market combined with lower interest rates are enabling buyers to qualify for more. In 2019 when rates were at 4%, the monthly payment on a 30-year fixed loan of $700,000 was $3,342. Today, with rates closer to 3.25%, the monthly payment on a 30-year fixed loan of $700,000 is $3,046. So today, the payment on a $700,000 loan is about $290 per month less than a year ago.
As the economy prepares to re-open and people head back to work, we are beginning to see more loan products return, which is, in turn, is bringing more buyers back into the market. The temporary “shut down” has not ended the demand for housing, just slowed it for a few months.
Non-qualified mortgage products, such as bank statement loans, asset depletion loans, and cross-collateral loans and adjustable-rate loans to $5,000,000 are slowly returning.
Qualifications have changed so it’s more important than ever to get pre-approved. Our mortgage professionals are available to assist you with any financial questions.