2020 has been a year like no other and real estate is no exception.
Unlike all of the discouraging news, however, real estate has to a large degree been a singular bright spot. The year started strong in January & February, similar to 2019. The early birds to the spring market were having success, and mortgage rates continued to fall to an all-time low. The onset of COVID-19 and the shut down in mid-March brought it all to a screeching halt. Transactions in the pipeline finished up as real estate was deemed an essential service but April and May saw a dearth of new activity.
When June arrived, it seems everyone who had spent the prior two months unhappy in their homes were on the move. Inventory continued to be low and demand was through the roof (no pun intended). Those conditions are a recipe for a seller’s market and what a seller’s market it has been. Average market times have dropped in Kane county between this November and last from 42 days to 14 median days on the market for single family homes and 37 to 16 days for townhomes. Updated, move-in ready homes are routinely selling within a few days, many times for over list price and with multiple offers. We are not seeing the typical fall slow down. Perhaps due to distance learning the school year has not been as much of a factor in timing this year.
The other big story in real estate has been interest rates. Comfortably below 3% they are now the lowest mortgage rates ever recorded. So, while buyers may be paying a premium due to fewer homes and more competition in the marketplace, over time that should be alleviated by appreciation, but their low rate will follow them through the life of their loan. This is to say it is still a great time to buy. If you have been thinking of selling, maybe downsizing or even moving up, buyers are out there, and your home will sell! Lenders have also been super busy with refinancing and why not? If you love the home you are in, now is a great time to lock in lower monthly payments. Depending upon fees, it usually takes about two years to pay back re-fi costs and after that it’s all gravy as they say.
Wherever life finds you at the end of this most difficult and unusual year, we wish you a holiday season of safety, comfort and joy. As always, here at Miscella we strive to be your trusted advisors. Please call us for knowledgeable, experienced, and caring advice on your real estate needs.
Because it’s your home…
Miscella Real Estate is a team of full time, licensed Brokers who bring a solid background of knowledge and skills necessary to navigate today’s real estate climate. Miscella Brokers are skilled in assisting first time home buyers, those who are looking to downsize or scale up, initiate new construction or renovate a fixer-upper. Miscella agents know all aspects of the Fox Valley marketplace and serve all price points. www.miscella.com
For those who want to sell their home in Aurora, Geneva, Batavia, St. Charles, Wheaton, Naperville, IL, get in touch with the real estate experts at Miscella Real Estate. Their agents will guide you through every step of the selling process from pricing to closing. Call them today at (630) 232-1570 or email info(at)miscella(dotted)com.