Written By As a journalist, I have researched the current state of the housing market to provide readers with an analysis of whether it is a good time to buy or sell a home.
The COVID-19 pandemic has had a significant impact on the housing market, causing fluctuations in supply and demand, as well as changes in consumer behavior. With interest rates remaining historically low and a shortage of available housing inventory, the current market presents both opportunities and challenges for buyers and sellers.
According to the National Association of Realtors, existing-home sales decreased in March 2021 by 3.7% compared to the previous month, due to limited inventory. However, sales are still higher compared to March 2020. Meanwhile, the median existing-home price increased by 17.2% from March 2020 to $329,100.
Despite the increase in home prices, low mortgage rates have made it easier for buyers to afford homes. The average 30-year fixed-rate mortgage interest rate in March 2021 was 3.08%, according to Freddie Mac. This low rate has been a driving force behind the increased demand for housing, leading to bidding wars and over-asking-price offers in some markets.
However, for sellers, now may be a good time to list their home. With limited inventory, the competition for homes is high, leading to multiple offers and potentially a higher sale price. However, sellers should be aware that the market could shift in the future, potentially leading to a decrease in demand and a more balanced market.
In conclusion, whether it is a good time to buy or sell a home depends on the individual circumstances of each buyer or seller. For buyers, low mortgage rates make homeownership more affordable, but they may face competition in the current market. For sellers, limited inventory may result in higher sale prices, but they should be aware of the potential for a shift in the market in the future. Ultimately, it is important for both buyers and sellers to consult with a qualified real estate professional and carefully consider their options before making any decisions.
