Three Reasons Homebuyers Are Ready to Purchase This Year

Dated: June 21 2020

Views: 9

Three Reasons Homebuyers Are Ready to Purchase This Year | MyKCM

A recent survey by Lending Tree tapped into behaviors of over 1,000 prospective buyers. The results indicated 53% of all homebuyers are more likely to buy a home in the next year, even amid the current health crisis. The survey further revealed why, naming several reasons buyers are more likely to move this year (see graph below):Three Reasons Homebuyers Are Ready to Purchase This Year | MyKCMLet’s break down why these are a few of the key factors motivating buyers to actively engage in the home search process, and the corresponding wins for sellers as well.

1. Low Mortgage Rates

The biggest reason potential homebuyers indicated they’re eager to purchase this year is due to current mortgage rates, which are hovering near all-time lows. Today’s low rates are making it more affordable than ever to buy a home, which is a huge incentive for purchasers. In fact, 67% of respondents in the Lending Tree survey want to take advantage of low mortgage rates. This is no surprise when comparing historic mortgage rates by decade (see below):Three Reasons Homebuyers Are Ready to Purchase This Year | MyKCMSam Khater, Chief Economist at Freddie Mac recently said:

“As the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery.”

2. Reduced Spending

Some people have also been able to save a little extra money over the past few months while sheltering in place. One of the upsides of staying home recently is that many have been able to work remotely and minimize extra spending on things like commuting expenses, social events, and more. For those who fall into this category, they may have a bit more saved up for down payments and closing costs, making purchasing a home more feasible today.

3. Re-Evaluating Their Space

Spending time at home has also given buyers a chance to really evaluate their living space, whether renting or as a current homeowner. With time available to craft a wish list of what they really need in their next home, from more square footage to a more spacious neighborhood, they’re ready to make it happen.

What does this mean for buyers and sellers?

With these three factors in play, the demand for housing will keep growing this year, especially over the summer as more communities continue their phased approach to reopening. Buyers can take advantage of additional savings and low mortgage rates. And if you’re thinking of selling, know that your home may be in high demand as buyer interest grows and the number of homes for sale continues to dwindle. This may be your moment to list your house and make a move into a new space as well.

Bottom Line

If you’re ready to buy or sell – or maybe both – let’s connect to put your plans in motion. With low mortgage rates leading the way, it’s a great time to take advantage of your position in today’s market.

Blog author image

Linda and Richard Askue

We Want to Become your Real Estate Agents for Life! We have a highly successful Team of Real Estate Professionals. If you’re looking to buy or sell a home in the North Atlanta, GA area let us help ....

Latest Blog Posts

Can You Be That Morning Person Tomorrow?

Ever wish you could become one of those rare morning people? The ones that wake with a start, feeling refreshed and energized. The ones that get in that morning workout or wrap up some work before

Read More

Things to Avoid after Applying for a Mortgage

Things to Avoid after Applying for a MortgageSome HighlightsThere are a few key things to make sure you avoid after applying for a mortgage to help make sure you still qualify for your

Read More

Why Right Now May Be the Time to Sell Your House

Why Right Now May Be the Time to Sell Your HouseThe housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest&

Read More

4 Reasons People Are Buying Homes in 2021

4 Reasons People Are Buying Homes in 2021According to many experts, the real estate market is expected to continue growing in 2021, and it’s largely driven by the lasting impact the

Read More