There is no question that 2020 has been a strange year. A new virus and shaky economy have created some hesitancy for those who have been considering selling. Yet after examining current housing market conditions, many experts believe 2020 has created the perfect storm for selling. Buyers outnumber sellers in the housing market, which means it’s better to be a seller than a buyer. Many believe that summer is the home-selling season, but it’s time for a reality check as we move into Fall.
Homebuyer demand is back with a vengeance. As lockdown restrictions have loosened, homebuyers are out and eager to make up for lost time. There are strong signs of a rebound with pending home sales being up over 44%, the highest month over month jump since 2001.
There is significant demand, especially in the suburbs and smaller cities, as buyers look to escape bigger metros, and more companies allow their employees to work from home. If we continue to see an increase in working from home, it enables families to move farther away, where they can get more significant properties for less money.
Housing prices continue to go up. With demand for homes up and inventory down, conditions are perfect for home sellers.
According to the National Association of Realtors (NAR), single-family home prices increased in most markets during the first quarter of 2020, with the national median single-family home price rising by 7.7%.
Another factor pushing home buyers is mortgage rates being low.
The economy is showing signs of recovery. While the pandemic led to high levels of unemployment, these levels have recently fallen. Economic data from May and June suggest that businesses are adding back jobs as consumers get back to spending, and some companies are now scrambling to keep up demand.
A surprising factor coming from the pandemic is that home buyers’ needs have changed. Along with working remotely, people are spending more time at home, and this, in turn, has ignited a new faction of home buyers whose current homes no longer fit their needs. Home offices, more privacy, outdoor spaces, and just more room have become essential, and buyers are tempted to trade a short commute for another room or two to be able to work from home in peace.
It is essential to understand market conditions but “don’t get overwhelmed with staging, selling, and moving and miss this opportunity to get the best market rates over the past six decades.” says Barbara Popp. Barbara Popp Real Estate Services will work with you to understand the selling process from listing your home, negotiating an offer, and the closing process. Things are different… for example, virtual tours have become common, and great photography is critical. Social distancing may mean home inspections and repairs take a little longer. Technology is your friend, and servicing the customer quickly is crucial to the sale. Barbara Popp Real Estate Services is available to work with you through each step of the new normal in selling your home.