What An Amazing Turnaround July Was…

The market has now proven resiliency regarding the COVID pandemic. There were questions last month after the negative numbers across all sales markers for June. But July (the last complete month available), came roaring back and so did the scarcity of listings, multiple offers, and near panic buying. It has not been unusual to have 5-15 offers on a single property. It is still possible to get a fair appraisal as appraisers will be looking for the most recent sales to justify prices. Of course, at the heart of all this activity is the Fed’s hope that prolonged low interest rates will keep the economy humming. You see, we all must have a place to live, and real estate is COVID proof in the sense that it’s essential and it is actually easier to buy a home, COVID risk free than it is to go out to eat or to the gym. 

If you are watching and waiting to see how low rates will go, this is probably it for awhile. But the Fed is clear that these rates are sticking around; they really do want housing to keep the economy going. Thanks to the latest dip in rates to under 3% (rates fluctuate daily), buyers have an approximate 25% added purchasing power right now. If this doesn’t take the sting out of sticker shock, nothing will.