Like many of you, I’ve been actively monitoring the developments around the coronavirus. It’s a fluid situation that’s continuously changing. The long-term impact is not yet known, but here’s a look at the current conditions, as of March 23rd.
All-Time Low Mortgage Rates
Over the past year or so, mortgage interest rates have been declining as more money flows into the bond markets, and they are now are at an all-time low. As of March 12, Freddie Mac reported a weekly average 30-year fixed rate mortgage of 3.36%, compared to 4.31% around the same time last year. This almost 1% change can increase a consumer’s buying power significantly.
Appreciation Remains Steady
Real estate remains a solid investment with proven appreciation over time. Historically, we’ve seen homes increase in value nearly 5% per year nationwide. In times of stock market volatility, consumers and investors will often flee from equities and put their money into the purchase of real estate as they know it’s an asset with multiple lines of revenue—appreciation, tax advantages, potential cash flow from rental income and loan principle pay down.
What I am seeing
Currently, homes are still showing in the Cary NC area. There is more of a demand of homes than supply. The current home buyers that are looking, need to move and are very serious and motivated buyers. Restrictions are in place to safe guard the seller against the COVID 19. There are no overlapping showings and buyers will be screened for possible Illness. In addition, kids are not allowed to tour homes and disinfectant wipes and sanitizer are being utilized.
If you need to buy or sell a home at this time, I am here to help. I’ll continue to evaluate the market as we move forward, and I’ll keep you updated.
Please Contact Me if you need any help.