It has been a strange summer to say the least. Between the threat of the coronavirus, a wobbly economy, and layoffs happening all over; it’s no surprise that many who may have hoped to sell their home this year have waited and may still be wondering if they should continue to put their plans on hold.
Such hesitancy is understandable. Yet, the irony is that the current housing market conditions show this may be best time to sell a home in years! The data indicates that buyers outnumber sellers in the housing market making it better to be a seller than a buyer.
There was already an insufficient supply of houses last year, and the pandemic has just intensified this shortage. Making the Fall real estate market abnormally hot this year as mortgage rates remain at near historic lows.
The coronavirus pandemic has rewrote the way we do a lot of things this year, and homebuying is no exception. Typically, the real estate market tends to hit the brakes in the fall, as kids return to school and families juggle work, extracurriculars and the upcoming holidays. But that’s not what is happening this Fall. Homes are getting snapped up faster as home values rise and mortgage rates to continue to remain low fueling demand.
As the number of homes for sale continues to shrink, new listings are being snapped up quickly.
Home prices have been climbing and, in some cases, bidding wars and multiple offers are not uncommon. Homes at entry-level prices ($75,000 to $150,000) – often purchased by first-time homebuyers – are seeing a lot of activity and will probably remain hot as long as interest rates stay low.
With unusually high buyer interest this late in the year, buyers are moving faster to beat out competition and lock in low mortgage rates. This means homes are sitting on the market for much less time, despite higher price tags.
Whether this buying trend will continue is up in the air. Currently, supply is lagging behind demand. The only thing holding back homebuyers right now is the low level of inventory and stiff competition for homes that do come on the market.
If you’re considering selling this year or next, it may be better to sell now in an environment that’s favoring sellers, rather than wait for time to pass and circumstances to change. Without a crystal ball, there is no way to accurately predict what the housing market will be like next year.
By Bonnie Marlow, Broker/Owner, Cisco Realty