What a time to be a home seller.
With the unemployment still cruising at a historically low rate of 3.5 percent, according to the Bureau of Labor Statistics, and inflation following suit at a paltry 1.9 percent, the U.S. economy continues to pound ahead full-steam. Curiously, interest rates remain low, with 30-year mortgages continuing their recent downward trend to a current national average of 3.7 percent. At the same time, the stock of single family homes continues to fall: December 2019 was the first month in 13 years that the rate of housing starts was high enough to not make the nation’s housing shortage worse (1.5 million new starts annually is the break-even point).
What does all that add up to for the seller? Money. Demand continues to ride high as rates continue to dive, giving potential buyers all the more incentive to borrow as big as they can while they use that cheap money to bid up prices on the relatively few houses that are available.