23 Oct Why it is a good time to buy or sell real estate this winter
Why it is a good time to buy or sell real estate this winter
First, let us discuss why the winter is a good time to sell.
1. We have a low inventory of homes for sale in the Twin Cities. At less than 9,000 homes on the market in the greater Twin Cities area. We are down over 30 percent from last year. This creates more demand, a greater sense of urgency and higher prices for the seller. For historical comparison we had over 30,000 homes for sale in 2009.
2. Interest rates are at an all time low. This works to benefit both sellers and buyers. The seller’s home is more affordable to more people.
3. The effects of the pandemic are only starting to be seen. Evictions and foreclosures are on hold and that will end soon. Also, many companies will have layoffs the end of this year and into next year. And many companies will simply go out of business.
This will affect the strength of our real estate market next spring and summer.
4. Lastly, we know the current real estate market is strong.
Second, why is the winter a good time to buy
1. Our current interest rates are 2.25% for VA and FHA loans and 2.5% for conventional mortgages. This creates wonderful buying power and in many cases buying a home is cheaper than renting. Not to mention the interest write off and better quality of life with owning your own home.
2. While there is less homes for sale in the winter some sellers are more motivated. The likelihood of multiple offers decreases in the winter which is helpful for many buyers.
3. Our real estate market appreciated about 10 percent over the last year and homeownership has a history of being a sound investment.
Look for more articles and videos in the future on different aspects of real estate.
Real estate is a wonderful investment!