A lot of people have been talking about how interest rates are at a “historical low” so I wanted to expand on how amazing it really is to purchase a house in today’s market. Just a couple years ago, in 2012, the average rate for a 30 year fixed loan reached an all time low of 3.35%. The last time we saw anything close to this was back in 1951 when rates were averaging 4%. Fast forward to today we are looking at interest rates around 4.5% which is incredibly low and not half bad considering they have once reached a historic high of 18.5% back in 1981.
Because rates are so low we are seeing a surplus in buyers, unfortunately the main challenge these buyers face is the lack of inventory. We are definitely in a “sellers market” where sellers hold the advantage between the two parties. If a home is listed at a good price, it is expected to get multiple offers, sell within the first week, and probably above asking price. There is definitely a demand for homes and with home prices on the rise you can get top dollar with a fairly short turn around time if listed and marketed correctly.
So over all I would say the real estate market is doing great! We are in a time where it is not only beneficial to buy but it is also a good time to sell. How amazing is that?
As always, the market is continuously changing but I am here to be your local expert and keep you informed and up to date on the latest trends and news. Feel free to ask me any questions. Hope you are having a fabulous Weber Weekly Wednesday!
You can check out the interest rate trends here to get a better glimpse of where rates have been since 1971.