COVID-19 has wreaked havoc on just about everything this year, including many sectors of our economy. But what kind of impact has coronavirus had on the real estate market?
Some questions that may be looming in your mind: Are people still buying and selling homes? What do the interest rates look like? Is it a buyer’s or seller’s market?
“This is the busiest and most competitive year for real estate that I’ve seen since joining the industry in 2016, and I’ve seen prices increase just in the span of several months,” said TRC Broker Amy Smith. “Houses priced in March could likely be priced higher now, in my opinion – driven mainly by high demand for the low inventory we have.”
According to Yahoo News, many Americans who were looking to list their homes, pre-pandemic, have changed course, opting to stay put until a clearer trajectory of the housing market is known. In turn, this has caused a shortage of homes on the market, creating a seller’s market demand for homes is high.
“It’s definitely a good time to sell a home because prices have been on the rise even throughout the past several months,” Smith said.
Despite a seller’s market, the current environment has also created unique opportunities for potential buyers as well.
“I’ve also seen an advantage to buyers in that some have been able to get a home that may not have necessarily been on the market,” said Smith. “Approaching a homeowner with an offer to buy their house could prove successful because sellers can get a good price and may be willing to sell, even when they hadn’t previously considered it.”
If you’re lucky enough to find a home, the Federal Reserve has slashed interest rates as a way to stimulate economic growth. For example, the average rate on a 30-year fixed mortgage has dropped below three percent.
On the local level, the housing market in Greater Lafayette typically tends to slow down in the fall, according to The Russell Company co-owner, Stacy Grove. During the third quarter of 2020, on average, homes have been on the market for 18 days, down four days from this time last year. “Many homes are just flying off the market,” Grove said. “Especially if they’re on the lower end of the price spectrum.”
Average home values are also up more than $10,000 as compared to this time last year with the average home selling for $224,000 in Tippecanoe County. As of right now, there are currently around 200 homes for sale throughout Tippecanoe County.
“For 2021, I feel the housing market will continue to stay strong and busy, as there are still a lot of buyers who weren’t able to get a home this year due to strong competition,” said Smith. “So, they (buyers) are still waiting for their opportunity.”
All in all, if you’re looking to buy a home in the near future, just remember patience is a virtue. Contact The Russell Company today at (765) 497-0700.