There’s no doubt that the global pandemic has brought chaos and uncertainty to numerous industries. It has also possibly made you realize that while you love your family, pets, plants – and whatever else may be filling up your house – that you need more space, or a patio or to be closer to a park. Maybe it’s a new layout or an extra bedroom you’re craving. Whatever it is that’s got you considering an address change, there’s good news. In many areas home values remain strong, and in a few key spots around Memphis, the real estate market is hot! 901 Properties is here to tell you why now is a time full of opportunities for buyers, sellers, refinancers and investors.
Let’s dive in…
Why it’s a good time to be a seller: home values are holding steady. The current market tells us that homeowners are confident in the value of their properties, and research shows that the majority of sellers are sticking to their asking prices and not offering discounts within the deal. And, more good news for sellers: interest rates are super low, like record-setting low. Now, you may be thinking, “That’s good for buyers, how does it help sellers?” Here’s how: A survey by the National Association of Realtors (NAR) found that nearly 45% of its members said they believe the low mortgage rates are encouraging buyers to house hunt. To sellers, that means there’s demand — a very good thing.
Why it’s a good time to be a buyer: interest rates are historically low. Of course, with amazing interest rates, buyers are on the prowl to lock in historically low interest rates for a mortgage. Savvy buyers know that if they wait too long, they just might miss out on this remarkable low-rate opportunity. On the other hand, with many people’s finances in question, there isn’t as much buyer competition. Less competition is a good thing for buyers who are actively looking.
Why it’s a good time to refinance: you could reduce your monthly mortgage payment. Same story here: With incredibly low interest rates, smart homeowners should check with their mortgage lenders to see if their numbers make sense for a refi. Yes, there are costs involved in a refi, so you have to determine if it’s worth it. Consider this, too: Is a reduction in your monthly mortgage payment worth adding on a few years to your mortgage? Your mortgage broker should be able to easily help you out with those decisions, advising you based on your specific situation.
Why it’s a good time for investors: many homeowners will be looking to sell.
Now is also an ideal time to consider buying a rental property as an investment. Why? Due to the circumstances of the coronavirus, many people unfortunately are not able to afford their houses anymore. This means there will be more supply available in the market. Plus, with so much economic and job uncertainty, some homeowners are considering switching from homeownership to renting a house — and if you own rentals, you’ll likely be able to get good tenants.
If your current financial situation is steady, buying a rental property now is a terrific way to create cash flow and build long-term wealth. Plus, our property managers here at 901 Properties can manage your rental property for you.
Staying Safe on the Real Estate Scene
Here are a few tips for staying safe during the pandemic while buying or selling:
- Do video walkthroughs of properties.
- If you see a property in person, bring hand sanitizer, wear a mask and gloves. And only the agent should open doors and closets, with gloves on, of course.
- Realtors and attorneys are adapting to remote closings.
According to the experts, the national real estate market is experiencing an overall softening at this time and is forecasted to have a strong rebound after quarantines are lifted. The experts at 901 Properties want you to know that, in our area, there are ripe opportunities right now for buyers, sellers, refinancers and investors.
To learn more and get specific about your real estate situation in the 901, please be in touch!