Here’s what our 2021 housing shortage means for both buyers and sellers.
For the last year or so, we’ve been in a housing shortage, and that means different things for buyers and sellers.
If you’re a seller, economically speaking, supply is low, and when supply is low and demand is consistent, you can get top dollar for your home. That’s what’s happening in our current market: we’re seeing home values appreciate at levels we’ve never seen before, and sellers are getting more money than ever before and selling in record time.
Typically, the above is detrimental to buyers. However, 2020 and 2021 have been the perfect storm for real estate. Due to the pandemic and several other reasons, interest rates have been held at historic lows. I have an economics degree, so I love looking into all this.
The cost to borrow money on a $250,000 home, for example, with the present interest rates, compared to if those rates increased just two points, can save a buyer $100,000 in interest savings over a 30-year loan. That’s quite a bit of money, so you may want to consider buying soon.
Never has it been a better time to sell or buy a home, and it’s very rare for those to line up. If you want a free copy of our lender list, just comment “lender list” below or private message me the same phrase, and we’ll get it out to you so you can explore whether buying and/or selling is the right decision for you. If you have any other questions about the housing shortage or real estate in general, call us at (717) 216-0860 or email email@example.com. We hope to speak with you soon.