Right now, as I am writing this blog, I am sitting in the same chair I have been sitting in to do online schooling for the past two weeks, with the same view I had when the pandemic hit and I was sent home from school the first time in March. Like many, many other homeowners, me and my family are itching for even the slightest bit of change. While my family satisfied that itch by repainting and redecorating the dining room, others are looking to move altogether. Whether they have decided that they need more space for a home office or gym, their kids are too old to be sharing a room all of the time, or they are just plain sick of their current home, many homeowners are deciding it is time for a change. More specifically, they are looking to relocate to metropolitan areas. According to the National Association of Realtors® most recent quarter report, all 181 metro areas that the association tracks have seen home prices increase in quarter three.
This is largely because, well, too many people are looking to buy a home, and there just aren’t enough to keep up with the demand. The NAR® Chief Economist Lawrence Yun says that homeowners are looking for houses with “larger properties and open space.” Many first time buyers are interested in buying now because of extremely low mortgage rates, but Yun notes that “...the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast."
The NAR® reports that “The nation's median existing single-family home price climbed 12.0% on a year-over-year basis, to $313,500.” And, even though mortgage rates are hitting record lows, the monthly mortgage payment on a typical existing single-family home rose to $1,059 in the third quarter, an almost 4% increase from quarter two, and a 2.5% increase from the third quarter of 2019. The typical home is defined as one that is financed with a 30-year fixed-rate mortgage and requires a 20% down payment.
While it is not impossible to find and purchase a home right now, it is definitely more of a challenge since so many other homeowners are looking to move as well.
If you are looking to buy a home right now, let Mighty help! We will get you regionally-based, accurate estimates on your inspection report in just 24 hours. If you are itching to get out of your current home, we will save you time at closing.