If you’re thinking of selling, many buyers may be eager to find a home just like yours. With stay-at-home orders lifting, recaps of massive memorial day pool parties springing up all over the internet, as well as rallies all across American in which 1,000’s of people are gathering in single locations to show support for fellow Americans, it certainly appears as if Americans are tired of staying at home. With that being said, the question for the real estate market is, “Can we expect homebuyers to jump back into the market as well. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.
Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:
“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”
In addition to this Google Trends, reported that searches for real estate increased 35% since Mid March. Although showings are down I don’t think this means people are not home shopping. The google numbers might be painting the picture that more potential homebuyers are looking for homes virtually.
What’s the Opportunity for Buyers?
Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”
With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.
What’s the Opportunity for Sellers?
As mentioned in many of our other articles we have never really been that concerned with the long term effects of COBID-19 on the real estate market. This is because we did not have a surplus of homes on the market. If anything the argument could be made that we had a home deficit. To add to this finding a home to buy, however, may be a greater challenge this summer compared to a few months ago. Many spring sellers removed their homes from the market. Although more people are putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.
According to last week’s Weekly Economic and Housing Market Update from realtor.com:
“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated to bring homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”
If you’re thinking of selling your house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Trusted real estate professionals can help you list safely and effectively, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list.
If you’re thinking of selling, many buyers may be eager to find a home just like yours. Connect with one of our experienced team members today to make sure you can get your house in on the action this summer.
The information contained, and the opinions expressed, in this article are not intended to be investment advice. JaScott believes the information in this article is relevant and from credible sources, but we do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein.