Hindsight Is Always 2020!
Yes, the adage seems so apropos in today's housing market. From March until June, the market was in disarray. The pandemic brought activity to a screeching halt. As restrictions were eased, the begging question was whether or not the market would go into freefall. The stimulus efforts by the Federal Reserve Bank gave a respite from what may have been a catastrophe. Market prices took some time to adjust over the summer and inquiries began to flow again. Prices began to adjust to levels from the early 2000's.
Mortgage rates are pegged to the market levels of Treasury Bills, most notably the 30-year mortgage to the 10 year Treasury note. As interest rates are hovering at historic lows, the 30-year followed in lockstep to levels not seen in years. A confluence of events providing a once in a lifetime opportunity for buyers!
But now, the rates on Treasuries have been inching up. The 10 year Treasury most significantly. While the Federal Reserve sets policy, the bond market sometimes marches to a different drummer. Does this mean the era of low mortgages is over? Hardly. Rates are still in the 3-3.25% level. Unless something drastic occurs, I don't anticipate a major spike upward.
So to employ the analogy about hindsight with this year seemed appropriate to me. I believe that when one looks back at the opportunities of this year, it will become apparent that 2020 was a watershed moment in the housing market. Low mortgage rates, prices adjusting to realistic levels are the formula for savvy buyers to step in. There have been doomsayers who have written our great city's obituary. I see positive signs in the volume of buying inquiries I get daily; sellers adjusting their expectations on the dynamics of the current market environment. All encouraging signs as the dust settles. My firm and I are on the same page in our confidence in the resiliency of our city and it's people. I would like to look back on 2020 and see positive outcomes for all.
Please Stay Smart, Stay Safe!