Mortgage rates are expected to dip — a silver lining for those looking to buy this spring as the coranavirus pandemic continues to sweep the nation, the Greater Lehigh Valley Realtors group says.
The 30-year fixed average was at 3.36% and a 15-year fixed average was at 2.77%, as of March 12, according to Freddie Mac, the government-sponsored Federal Home Loan Mortgage Corporation. This follows interest rates dropping three times in 2019 after the Federal Reserve in 2018 approved four rate hikes.
“As we progressed through February, the actual and expected impacts of COVID-19 continued to grow, with concerns of economic impact reaching the stock market in the last week of the month,” said Jack Gross, the group’s president. “As the stock market declined, so did mortgage rates, offering a bad news-good news situation. While short term declines in the stock market can sting, borrowers who lock in today’s low rates will benefit significantly in the long term.”
Home prices also continue to climb moving into late March.
The group’s annual report shows the overall median sales price in February rose 8% to $199,999. Days on the market was down 7.4 percent to 50 days. Inventory levels continue to shrink with the months supply of inventory down 41.7%. In real estate, months of supply is a measurement of how many months it would take to sell the current inventory of homes – in a market balanced between buyers and sellers, it would be about six or seven months.
At February’s sales pace, all inventory in Lehigh and Northampton counties would sell out in just 1.4 months, according to the Greater Lehigh Valley Realtors. Closed sales are remaining flat with one-property change — there were 450 closed sales in February 2019 compared with 449 closed sales this past February.
The region’s nearly 3,000 real estate professionals are reporting a pick-up in the market, with the spring housing market starting early, partly thanks to a less-than-harsh winter, said Justin Porembo, the Realtor group’s CEO. Pending sales were up 14.5% to 686 and averaging 50 days on the market in February.
As real estate agents grapple with the pandemic, the National Association of Realtors is warning sellers of the risks of open houses. Alternative marketing opportunities include video tours and other virtual methods. The group is suggesting if there is an open house, all visitors disinfect their hands upon entering the home, sellers limit the amount of people, and alcohol-based hand sanitizers be provided at entryways, as well as soap and disposable towels in bathrooms.
After the open house, clients should clean and disinfect their homes, especially commonly touched areas, such as doorknobs and faucet handles, the group says.
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