The country’s housing market is currently experiencing an uptrend, with home selling prices rising up to 24.8% in June, according to Redfin. An increase of 20.6 % in the number of homes sold was likewise noted during the same period, with median prices reaching USD$386,888.
The hot housing market is mainly driven by low levels of housing inventory, in turn because of a slowdown in construction activities. On the other hand, the demand for housing continues to rise, leading to an active real estate market.
Experts interviewed by real estate company Zillow indicated that Denver, Austin, Nashville, Tampa, and Phoenix are few of the localities with the hottest housing markets. Most parts of the country reflect this situation that’s highly favorable to homeowners looking to sell their properties soon. As the real estate market continues to be on the upswing in most states, it helps to understand what the current conditions could mean to home sellers and home buyers.
Now Is The Best Time To Sell A Home
While generally favorable, there are different behaviors in the housing market in each locality. Sellers can use such analyses to decide whether it’s the right time to sell a property.
In Nebraska, for instance, the median home value is pegged at USD$172,093, with almost half or 43% of homes within the USD$188, 847 to USD$237, 851 range.
From the last quarter of 2020 to the first quarter of this year, properties in the said state increased to 1.45%, with a comparative year-on-year hike of 5.93%, according to neighborhoodscout.com.
Taylor, Thedford, and Ansley are the top localities with consistent appreciation rates since the year 2000. So if you live anywhere in the said localities and nearby areas, list your home now or offer it to home-buying companies such as Element Homebuyers.
Nebraska will see an increase in millennial home buyers, with the National Association of Realtors’ naming the Omaha-Council Bluffs one of the top ten best places for millennial homebuyers.
Home Buyers Should Take The Opportunity, Too
Lenders take the opportunity while the housing market is active to offer special rates to prospective borrowers. Similarly, home buyers have to make the most of the following as well:
- Lowered Mortgage Rates
Currently, mortgage rates have remained low. As of writing, the national average cost of a 30-year fixed-rate mortgage is pegged at 3.2%, while a 15-year fixed-rate mortgage is at 2.53%, according to bankrate.com. These rates may not last for long, fueling buyers’ interest. If you want to purchase a home soon or expand your real estate business, consider these rates and start home hunting.
- Tiny Homes Are In High Demand
Most properties up for sale are small homes meant for single families. The tiny house movement, as what many people call it, is experiencing a boom. That’s because some cities, in an attempt to address the lack of housing, has offered programs enabling millennials and empty nesters to sign up for affordable home programs.
Common Reasons For Hot Housing Markets
You may be wondering what causes hot markets to come up in the real estate industry in the first place. Here are four factors you should be aware of:
- Increase In First-Time Homebuyers
Homeowners putting their property on the market are contributing to the inventory, even if they’re doing it for the sake of being able to purchase a new home. Their actions don’t impact the housing supply because they have something to offer in exchange for the home they’re planning to buy.
With first-time buyers, it’s different because they’re taking on a new home but not selling a property, putting a dent to the housing supply. This drives the prices up.
- Inventory Remains Tight
The pandemic has exacerbated the tight supply in the housing market, with construction activities getting halted for almost one year. When 2021 started, the estimated deficiency for housing units reached 1.04 million, according to estimates by barrons.com.
This year, construction has not kept up with pace, with the National Association of Home Builders partially attributing the construction slowdown to the high cost of materials. In July, the White House organized a meeting with them and other key players to discuss problems in the housing sector and find solutions to address them.
- Population Growth
When there’s an increasing number of people relocating in a place, the whole economy becomes vibrant—real estate and housing markets included. An increase in population means a growing demand for basic needs such as housing, driving its prices up.
- Economic Hike
Any increase in population is likely driven by economic improvement, and often, the main indicator of economic progress is the need for more jobs. And more jobs mean more people, with a booming economy attracting individuals from different parts of the country.
With the economies reopening following a slump in the previous months due to the pandemic, the need for more people leaving their homes to relocate triggers housing prices to rise, too.
Final Thoughts
With the current housing backlog not likely to be addressed anytime soon, housing costs are projected to either stay within their current rates or continue to increase.
Either way, homeowners planning to sell their homes will greatly benefit from the current housing market situation. Home buyers may opt to wait for home values to dip or apply for mortgage loans, which are relatively lower compared to their previous rates.