Unique opportunities await both buyers and sellers in this summer market.
Nobody expected a real estate rebound quite like this. As a result, we’re seeing a unique opportunity for anybody thinking of selling a home. I’ll explain what I mean in a second. First, let me give you the details:
1. A surge in demand
According to the National Association of Realtors, pending home sales spiked a stunning 44.3% in May compared with April. That is the largest one-month jump in the history of the survey, which dates back to 2001. It blasted expectations of a 15% gain.
Of course, the reason behind this is the pandemic. Much of the housing market began to shut down in mid-March. Since this is normally the hottest part of the year for real estate, there is a tremendous amount of pent-up demand. But that’s not all.
2. Ultra-low mortgage rates
We’re seeing mortgage rates continue to hit new record lows. The 30-year fixed mortgage rate currently stands at 3%—more than a half percent lower than a year ago.
Not surprisingly, this is creating even more demand, as buyers seek to take advantage of these historically low and favorable rates. The lower the rate, the more they qualify for. There’s only one thing standing in their way:
3. A lack of inventory
The inventory of homes for sale was low even before the pandemic hit. It’s even lower now since many sellers pulled their homes off the market and have been slow to list them once again.
If you were to sell in the current market, you’d have a great shot at selling for top dollar and in record time.
The supply of existing homes for sale at the end of May was nearly 19% lower than the same time last year. It’s July now, but we haven’t increased supply that much; we’re still 12% below where we were in summer 2019.
What does all this mean for you? In short, it means we are back in a strong seller’s market. Pent-up demand and low mortgage rates mean there are many buyers on the market.
On the other hand, low inventory means much of that demand is not being met. As a result, prices are rising, bidding wars are becoming common, and homes are selling quickly. Last week, I sold a home way over list price within four days of putting it on the market!
If you were to sell in the current market, you’d have a great shot at selling for top dollar and in record time. Like I said, right now might be a unique moment. It’s not clear how long this situation will last. As more sellers start listing their homes, we’re likely to have some balancing out between supply and demand.
If you’re curious about selling your home or simply have questions about the current real estate market, give me a call or send me an email. I’m talking to buyers and sellers all day long and have a great feel for the changing market conditions, which I’m very happy to share with you!