To buy or to sell? The summer forecast for Lakefront homes in PA
From the historically low mortgage interest rates throughout the pandemic year in 2020, rates remained low going into 2021 – as low as 2.65% in January of this year. Even as coronavirus fears and restrictions ease and vaccination numbers rise, homebuyers can still enjoy extremely low-interest rates of around 3%. In fact, Real Trends stated that “Freddie Mac reported the average interest rate for a 30-year, fixed-rate mortgage was 3.13% as of April 8.” Going into the summer of 2021, those interest rates should remain fairly stable, making this season a great time to buy Lakefront homes in PA.
Lake Wallenpaupack, one of Pennsylvania’s most beautiful summer destinations, offers 52 miles of uninterrupted shoreline – making it the perfect place for fun in the sun throughout the summer season and beyond. But, due to the low inventory of homes and major competition to purchase (especially on the waterfront), buyers had better be quick in their decision to purchase.
The aftereffects of COVID-19 on the real estate market are long-tail ones, as homebuyers still seek larger, more spacious homes outside of urban areas (thanks to telecommuting, virtual schooling, and the aforementioned low-interest rates).
According to U.S. News & World Report: Todd Szwajkowski, a real estate broker and president of SwakeGroup at Dream Town Realty in Chicago, says that he was surprised when 2020 turned out to be his team’s best year for home sales, despite the pandemic.
That means more buyers are in competition for the same Lakefront homes in PA, so coming in with a full-price offer is the status quo these days. If you’re ready to buy a lakefront home this year, make sure you consult with a Realtor to ensure your offer is the top pick.
The summer 2021 season for sellers
Sellers are still in control of the housing market and predicted to remain in control throughout the summer of 2021. With inventory down more than 20% from last year, sellers have the upper hand when it comes to real estate transactions, as supply remains low and demand is ever-growing, especially in non-metro areas. This, of course, also means that home prices are rising. According to the National Association of Realtors (NAR), the national median home price for existing homes in February of 2021 was $313,000, a 15.8% increase from the prior year.
So what does it mean for selling Lakefront homes in PA? Those who list their homes in this climate are almost guaranteed to get top dollar, assuming their homes have no major structural or otherwise “deal-breaking” issues.
According to Lawrence Yun, NAR’s chief economist: “While these [high-price] hurdles have contributed to pricing out some would-be buyers, the record-high aggregate wealth in the country from the elevated stock market and rising home prices are evidently providing funds for home purchases,” Yun says. “More market listings will appear in the second half of 2021, in part from the winding down of the federal mortgage forbearance program and from more home building.”
In other words, if you’re thinking of listing your home in 2021, you’re not alone. In such a competitive buyer’s landscape, it’s a no-brainer that putting your home on the market could result in multiple offers over the asking price – and those aren’t easy to turn down!
To learn more about Lakefront homes in PA and Lake Wallenpaupack real estate for sale, contact us today!