(Dec. 25, 2020) This year has produced noticeable real estate market shifts, and in many cases the surge in real estate demand was fueled by the effects of covid-19.
Here on the shore, we saw increases in feeder market sales due to the consumers desire to have a safe, drive-to vacation spot.
Various other factors all supported this surge in sales, such as historically-low interest rates throughout the year, an increase in the use of retirement funds for downpayment monies due to some lightening of the withdrawal penalties in 2020, and an overall sense of “what am I waiting for” attitude being a psychological by-product of the virus and the quarantining.
With having historically-low interest rates through 2020, buyers ask how long can the low interest rates last?
It seems the Federal Reserve will be in a holding pattern on the short-term rates as the economy shows some signs of a slowdown at the end of 2020 and this will help keep interest rates down for the foreseeable future.
The Freddie Mac weekly survey shows rates for a 30-year, fixed-rate loan closed out the week of Dec. 17 at 2.67 percent, four basis points lower than the previous low of 2.71 percent seen for the past two weeks.
This is a slightly steeper decline than most weeks when the rates would only take one or two basis points off to reach their new low.
Forbes.com reports “it is looking very possible” that rates could dip under the 2 percent threshold for 15-year loans.
As reported through November by Maryland Realtors, the average sales price for homes across the state of Maryland has risen 11.4 percent to $394,901 as compared to $354,416 in 2019.
For Worcester County specifically, the November sales price average was $347,572.
– Lauren Bunting is an Associate Broker with Atlantic Shores Sotheby’s International Realty in Ocean City.