For the first time in years, things are picking up in the housing market. With the combination of our improving economy and interest rates at historic lows, we are seeing progress in a downtrodden industry. As real-estate prices continue to stabilize, homes are quickly selling once they are on the market. In past years it may have taken a few months to sell a home. Now, it’s not uncommon for homes across the nation to have offers within the first week. Some properties are even getting multiple offers, which, according to some realtors, hasn’t happened in quite some time.
With this increase of activity, what’s the reason for this trend?
In some areas around the country the demand is higher than the supply. Other potential reasons for the upturn are stabilizing home prices and lower interest rates. Buyers are more confident in their purchasing decision because the rates are competitively low. For some mortgage lenders, rates are now as low as 3.5 percent for a 30-year fixed mortgage, compared to 5-6 percent in 2008.
Another theory about the recent increase in numbers for the housing market is family maturity. With “the worst” being behind us when it comes to our economy, buyers can be secure in their decisions and make changes for their families. Whether it’s downsizing because the kids moved out or buying a first home before the wedding, there are many reasons for a family’s needs to “mature.” As a nation we put the changing needs of our families on-hold during the financial crisis. Now that the economy is improving, buyers are more confident in purchasing properties.
So, can this home-buying trend help our nation out of the recent financial crisis? Some say, home-buying leads to economic benefits, including investing in that property as well as the surrounding community.
Vacant properties are more susceptible to break-ins and crimes, such as metal theft. When a property is owner-occupied, neighborhoods are safer and communities are invested in. Often new property owners purchase new carpets, buy new furniture, and improve kitchens, along with other home renovations. All of these home improvement ventures are investments into the community by stimulating the local economy.
Are you a mortgage professional with an overwhelming amount of work to do? Do everything you can to ensure the buying and selling process runs smoothly for your clients by requesting Blue Streak Docs’ document retrieval services. Our staff is dedicated to track down every document you need. Find out what we can do for you by contacting us today at (727) 479-0007!