The housing market is picking up speed – and some real estate professionals say prospective homebuyers should take advantage.
Data released Wednesday by the Mortgage Bankers Association showed that last week, the number of buyers who applied for a mortgage reached its highest level since January. Overall mortgage activity increased, too, inching up 2.8% on a weekly basis, marking the fourth consecutive week of gains.
It’s the latest evidence that prospective homebuyers may be seeing more opportunities to enter the housing market as mortgage rates ease and the inventory of houses for sale grows.
“The recent strength in purchase activity continues, supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year,” Joel Kan, the group’s vice president and deputy chief economist, said in a statement.
Mortgage rates, for example, are nearing their lowest daily rates since early October, data from Mortgage News Daily showed. And last month, the supply of existing homes was up more than 19% compared to a year earlier, according to the National Association of Realtors.
Those conditions are creating a window of opportunity for buyers, according to real estate agent Kristy DeWitz, who is based in Mesa, Arizona.
“The time to strike is now,” she said. “The market is stagnant, competition is low and many sellers are under pressure to close.”
Buyers beware
But DeWitz said that window of opportunity may be finite.
“When the market turns – and it will – you’ll be sitting on instant equity,” she said. “The opportunity to secure a great deal is right now.”
From the Homes.com blog: Buyer's Market vs. Seller's Market
Recent data has indicated the housing market could be due for an influx of deals – and increased competition for buyers.
For example, in October, the number of home showings increased nationwide compared to the same time a year earlier, according to the NAR. At the same time, more buyers signed contracts to purchase existing single-family houses and condos compared to the month before.
“Homebuying momentum is building after nearly two years of suppressed home sales." NAR Chief Economist Lawrence Yun said in a statement. “It’s encouraging to see contract signings increasing in all major regions of the country.”
And other industry professionals have offered a similar opinion. Last month at the NAR’s annual convention, real estate agent Lisa Richardson from Omaha, Nebraska, said she foresees next year being busy for residential real estate, especially once President-elect Trump is inaugurated.
“Real estate is going to be so good. I really feel like it is,” she said.