To say that 2020 has been a bit of a whirlwind would be an understatement. And as we get closer to the end of the year, many buyers and sellers are wondering if it makes financial sense to enter the Johnston County real estate market.
Yes, the warmer months are typically considered the best time to move, but 2020 has changed all the rules. Buyer demand surged into fall, while the available supply of homes in Johnston County kept dwindling. This has caused our home prices to skyrocket to one of their highest points ever.
Need some advice before breaking into today’s competitive housing market? We have a few details to consider before making any big decisions.
Buying or Selling Soon? Here’s How Rising Home Prices Will Affect Your Move
Real estate whether it’s located in Clayton, NC, or any other market, has always been about supply and demand. For example, during the national housing market crash of 2008, home prices plummeted partially because of low buyer interest. Today, though, we’re seeing the opposite—prices are increasing due to waning supply and rock-bottom mortgage interest rates.
Why have home values increased?
Even amidst a pandemic and national recession, buying a home is still a top priority for many Americans. In fact, according to a newly released report by the National Association of Realtors (NAR), the number of existing home sales reached a 14-year high this August. A similar report by Bloomberg states that if current demand holds strong, we could run out of housing inventory in around three months.
Wondering why so many people are clamoring to buy this year? Even in the face of rising home prices, low mortgage rates have enticed buyers to make a move. While record-shattering rates have helped to expand purchasing power, this intense desire for homeownership has caused prices to jump by a whopping 8.2% year-over-year.
Buyers can take advantage of lower interest rates to afford a more expensive home
If you’re thinking about buying a home soon in Clayton, Wendell, Archer Lodge, Smithfield, Selma, Zebulon, or any other location in Johnston County, you’ll need to be prepared to navigate a cutthroat market. Ever since rates started decreasing in late 2019, more and more buyers have decided to start searching for a home, especially new homes. Unfortunately, this means you could get caught in a bidding war or might have to make some compromises to secure a place of your own.
Although prices have soared dramatically since last year, buying a home is still an attainable goal. In fact, when mortgage rates sunk below 3% this summer, buyers found themselves with an extra $15,000 in purchasing power.
If you’re feeling a little overwhelmed by today’s market, you’re not alone—and reaching out to one of our amazing agents who can help you get the answers you need.
Because finding a new home can be akin to a “Mission Impossible” it is strongly recommended you consider contacting a real estate professional before you start looking for homes. One of our highly rated Jaclyn Smith Property agents will provide the expertise you need to find your perfect place!
Sellers should expect to sell quickly and for top dollar
Today’s Johnston County home sellers are in a better position than ever before. Our current housing market has struggled and continues to keep pace with buyer demand, but this deficiency has only been exacerbated by the pandemic. By listing now, you could take advantage of fierce rivalry amongst buyers, high home prices, and low competition from other sellers.
Despite the ongoing recession, home prices have actually climbed throughout most of 2020. Between May and July, existing properties appreciated in value by a whopping 2%, which is the highest month-by-month increase in three decades. If you’ve lived in your home for at least 2 years, you could be sitting on some serious equity.
Even if you aren’t interested in selling, there’s never been a better time to check on your house’s current value. Our top-rated JSP agents are able to perform a full home analysis and tell you how much you could sell for if you listed today.
Bottom Line: Now Is the Time to Talk with one of our Agents
Whether you’re thinking about buying or selling your home in Johnston County, you shouldn’t wait to connect with one of our agents. We have plenty of experience in our area. We can help you keep up with today’s ever-changing market and answer any questions you might have.
Not quite ready to move? It’s still worth talking with a member of our team about your current home’s value, especially as we continue to see such dramatic price increases!
Ready to Take Your Next Steps?
No matter what your real estate needs might be, we’re here to help you every step of the way. Get in touch with us today and let us know what we can do for you. We can even conduct a comparative market analysis on your home to see how much equity you’ve gained over time!