Buyers, sellers, and Realtors tend to expect Winter to be a slow season for real estate. However, Winter in 2020-2021 is likely to be an exception. The housing market expects to be red-hot for the next several months. A combination of low housing inventory, pressure from COVID-19, and low interest rates will have both buyers and sellers looking to make a move.
Why will so many people be buying and selling homes before Spring? Here are a few reasons.
Expectation of High Buyer Demand
The difficulties in 2020 did not give buyers a typical home-shopping experience. Fewer listed homes made ideal homes more challenging to find because of COVID-19 concerns and lockdowns across the country.
As a result, many buyers are still looking for homes later in the year, but they have not given up the search. Buyers still have their eyes on the market.
At the same time, the COVID-19 situation is putting pressure on how people use their homes. Instead of being a place to spend free time, a house is now a workspace, a school, and more. With so much time spent at home, people are looking for the chance to get more space, which means larger homes are in demand.
Remote work is a boon for many people, and a variety of companies are looking into making these arrangements permanent. Because remote workers have a lot more flexibility in where they live, many will be looking to move outside metro areas and find larger, less expensive homes that accommodate their new lifestyles.
All these factors are occurring at a time when mortgage rates are at historically low levels. It is easier for buyers to get a great interest rate on a home loan, making upgrading even more appealing and purchasing a home more accessible.
Great Opportunities for Sellers
The lockdowns of 2020 created much demand for homes, which means sellers can get a great price even if they list in the off-season. Typically, a seller who lists their home in the Winter will get fewer offers and less buyer interest. However, in 2020 the market looks different.
An ongoing trend of low home inventory means that many eager buyers have not found their dream home yet. This high demand leads to higher prices and bidding wars, even during a typically slow homebuying season.
People looking to upgrade their homes may have to sell before they can buy; consequently, the market may loosen a bit in some areas. Properties are moving more quickly than usual as well. A full 71% of the homes sold in September were on the market for less than a month, showing an unusual spike over previous years.
The U.S. has been in a seller’s market for a long time. Increased buyer interest this Winter will only continue the trend. It is a great time to sell a home!
Look for a Hot Housing Market This Winter
With the stress this year from COVID-19, work-from-home arrangements, and at-home schooling, homeowners are more aware than ever of the shortcomings in their current home situation.
Buyers unable to move because of lockdowns are still searching. Demand has carried over from unfulfilled Spring and Summer home purchases, remaining high going into Winter.
At the same time, sellers face a very favorable market. Homes are moving quickly and selling for high prices. The housing market will likely stay hot for months to come.
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in conventional home mortgages, FHA, VA, and USDA mortgage options, refinance loans, and reverse mortgages. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.