The volatility surrounding the 2020 presidential election helped push mortgage rates to their 13th record low this year, giving both homeowners and buyers a boost.
“The average 30-year mortgage interest rate fell to 2.72%, an all-time record low. Some 19.4 million homeowners are now in a position to save an average of $309 per month by refinancing, for an aggregate $5.98 billion in potential monthly savings – also the most in history”, said Jo Dixit, who has a unique vantage point being a licensed loan originator and a RE Designated Broker.
With rates now close to a full percentage point lower than they were a year ago, buyers in the 4 county Puget Sound region of King, Pierce, Snohomish, and Kitsap, are snapping homes up almost as fast as they’re listed.
So, last month saw more of the same – unprecedented low inventory, anxious buyers, bidding, and another surge in home prices.
Seattle housing market continued to defy seasonality as new records were broken by both buyers and sellers.
Sellers continued to have little competition as escalation clauses, appraisal gap waivers, and “as-is” offers were used by the buyers fighting hard, to secure a place they could call home.
October 2020 saw a 53.76% drop in active listings compared to the same month a year ago, an increase of 6.2%% in pending sales (mutually accepted offers). On a month-on-month (MoM) basis, the housing supply decreased by 10%.
Sellers are trying to take advantage of the soaring prices as evidenced by the 24.2% increase in New Listings. However, the tremendous pent-up demand aided by the buyer’s desire for a larger home and historic low-interest rates is leading to listings being stripped from the market at a stunning pace.
“Homeowners are saving big by refinancing and are taking advantage of low-interest rates to buy investment properties and second homes. Even in this white-hot, multiple-bid market, there are plenty of cash flowing rental properties available that pay for themselves.
“Smart homeowners are tapping their home equity to grab these income-producing properties”, said Jo Dixit, Designated Broker of BricksFolios Real Estate Solutions, a niche wealth-focused brokerage that enables home buyers to build wealth with smart real estate portfolio.