The weather is warm, the sun is out, school is coming to an end, and the housing market is currently booming—good times all around. After a slow climb the past few quarters, the national housing market is starting to boom again. This week, we thought we would explore the causes for this recent boom, and assess whether or not it’s a good time for you to buy or sell.
Back in April, U.S. home sales hit their highest level since 2008, the year of the housing-bubble burst. While that may be a frightening thought to some, the housing market seems to be in no shape of collapsing anytime soon, and mortgage rates have remained stable, which many have attributed to the main cause of the market crash. In addition, home sale prices hit their record peak, meaning that buyers are willing to pay.
For the first time in quite a while, many first-time home buyers are entering into the market, making it very easy for sellers to sell, due to higher demand. Thanks to the low interest rates provided by the Federal Reserve, mortgages are manageable, allowing these first-time home buyers to confidently venture out into unknown territory. However, the Federal Reserve has hinted that they may be raising interest rates soon, which if they do, could lead to even more people entering the housing market before the rates become unreasonably high.
This little housing boom has also done wonders for retail, as more and more people are going out and spending money. Overall, this is fantastic news for the U.S. economy, which has seen its fair share of turning and tossing since the Great Recession.
As for our little slice of South Jersey, the housing market is doing very well. Whether you’re a buyer or seller, now is the time to enter in the market. There are buyers who are willing to buy (especially those who are going through the process for the first time) and sellers who are willing to sell—it’s a win-win all around. There seems to be no evidence of this trend slowing down in the immediate market forecast, so now is the time to hop on the train.
To take advantage of these good times in the housing market, feel free to give American Dream Realty of South Jersey a call. We would love to have a talk with you and explore your options of buying or selling in these good times.