Amazingly interest rates have remained low—in fact, interest rates are lower now than they were at this time last year! This isn’t the only reason for this incredibly busy market. There are many “stagnant” properties that were on the market at the end of 2018 that are still waiting for their perfect buyer. These properties are “ripe” for a contract offer, however any properly priced will receive multiple bids. It’s a great market. So what’s going on, and why now?
Buyers are consistent, at least in my experience. In the two “Great Recessions” of the early 1980s and 2000s we had buyers, and during the several mini recessions in between we had buyers. Obviously in the good times we had plenty of buyers. So what’s happening now? We have buyers! The latest wave of buyers was just waiting for more inventory, and a more affordable atmosphere that simply didn’t exist the second half of 2018. We have it now—low rates, lower prices and honest, sincere sellers.
Why are the rates remaining low when the Federal Reserve promised to raise them at least two times in 2019? Because they are receiving mixed signals about economic growth, and they are aware of global pressures effecting the U.S. economy. Wages have been unimpressive, and job creation was lower than expected. All in all, we have a decent economy but not the inflationary type to warrant rate hikes.
Now you know what’s going on and why it’s happening now. Go ahead, buy some real estate. It’s affordable…and fun too!