A recent survey by Lending Tree tapped into behaviors of over 1,000 prospective buyers. The results indicated that 53% of all homebuyers are more likely to buy a home in the next year even amidst the current health crisis. The survey further revealed three of the few key factors motivating buyers to actively engage in the home-search process and in the corresponding wins for sellers as well. Number one is low mortgage rates.
The biggest reason potential home buyers indicated they’re eager to purchase this year, is due to current mortgage rates which are hovering at all-time lows. Today’s low rates are making it more affordable than ever to buy a home. In fact, I recently worked with a client who was able to purchase a nicer home than they were in and their payment went down. This is a huge incentive for home buyers. In fact, 67% of respondents in the Lending Tree survey want to take advantage of low mortgage rates. This is no surprise when comparing historic mortgage rates by a decade as you can see in this chart below.
This year Sam Khater, chief economist at Freddie Mac recently said, “All signs continue to point to a solid recovery in home-sale activity heading into summer as prospective buyers jump back into the market.” Low mortgage rates are a key factor in this recovery. Number two is reduced spending. Some people have also been able to save a little extra money over the past few months while sheltering in place. One of the upsides of staying at home recently is that many have been able to work remotely and minimize extra spending on things like commuting expenses, social events, and more. So for those who fall into this category they have a little bit more saved up for a down payment and closing costs making purchasing a home more realistic this year.
Number three, as we all know, reevaluating their space. Spending this extra time at home has also given buyers a chance to really evaluate their living space whether they’re renting as a current homeowner, buyers are really wanting to find something that fits what they really need in their next home. So many are looking to upsize to their dream home. Buyers are needing more square footage, more spacious neighborhoods and they’re ready to make that happen.
So what does that mean for buyers and sellers in the Tulsa Metro Area. With these three factors in play, the demand for housing will keep growing this year, especially over the summer. Buyers can take advantage of additional savings and lower mortgage rates. And if you’re thinking of selling in Kiefer, Oklahoma 74041, Mounds, Oklahoma 74047, and Sapulpa, Oklahoma 74066, now that your home may be in high demand as buy interest grows and the number of homes for sale continues to dwindle.
This may be the moment to list your house and make a move into a new space as well. If you’re ready to buy or sell or maybe both, let’s connect to see if now is time to put your plans into motion. With low mortgage rates leading the way it is a great time to take advantage of your position in today’s market.