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I have noticed lately that there are a huge number of ‘Home for Sale’ signs in my neighborhood. On my street alone, there are at least 5 Home for Sale signs – and I live on a fairly short street. Many people are choosing to put their home for sale due to the low mortgage rates. While those that still have a mortgage are refinancing it to take advantage of the low rates, those that have completely paid off their mortgage are putting their home for sale so that they can upgrade to a larger home. As well, due to the increased demand for homes caused by the low rates the prices that people are getting when they put their home for sale is higher than they expected making it an even more worthwhile venture.
However, the increase prices, while ideal for those who have their home for sale, is hurting the buyers in the market. Furthermore, as a lot of people put their home for sale, a lot more money will be flowing through the economy which will in turn push interest and mortgage rates back up pretty soon. I am far from an expert in the real estate industry, but it seems as though the window when you can take advantage of the low mortgage rates is fairly small as it is only a short time before the purchase price of the home rises enough to negate the benefit of the low rates.
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