If you’ve been debating that FOR SALE sign on your front lawn, then now may be the time to follow through. Given the low mortgage rates, buyers are coming in droves for houses that aren’t there, according to CNBC. Existing homes have sold in less than a month, while new constructions are closing closer to the three-month mark.
NAR chief economist Lawrence Yun had this to say:
“Homeowners’ equity in real estate has doubled over the past six years to now nearly $16 trillion. But the number of potential buyers exceeds the number of homes available. We need to see sizable growth in inventory, particularly of entry-level homes, to assure wider access to homeownership.”
If you’re a prospective buyer in the current market, then rates are currently working in your favor as well. The average rate on the 30-year fixed was 4.29% in May, but ended the month of June at 3.81%.
Even those small percentages make a huge difference in what you may be paying down the line. Using $300,000 as an example in this chart, notice how much more a small percentage can cost you:
So, is now the time to buy, or sell?
In just one word: Yes.