Buyers are ready but are sellers?
If you've been thinking of selling, now is a good time. The current real estate market is thriving.
There has been a measurable uptick in showings as well as homes going under contract at a steady pace. Market time has been reduced as buyers are actively looking and are ready to purchase now, but inventory remains low.
After several months spent at home, buyers have had time to re-evaluate what they really want and need in a home. They are looking for more space that meet their needs in todays changing work and school scenarios. Buyers are evaluating school districts and are looking for those districts that are on track and prepared to to adjust to accommodate any changes. Buyers are deciding they want more outdoor space. Many are anxious to get settled in now. These factors have increased the number of buyers looking and is influencing buyer time lines- they are ready and looking to buy now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) explains:
“A number of potential buyers noted stalled plans due to the pandemic and that has led to more urgency and a pent-up demand to buy…After being home for months on end – in a home they already wanted to leave – buyers are reminded how much their current home may lack certain desired features or amenities.”
The latest Market Recovery Survey from NAR shares some of the features and amenities buyers are looking for, especially since many buyer priorities have shifted. The most common home features cited as increasingly important are home offices and space to accommodate family members both inside and out. (See graph below):
The survey also indicates that many buyers are looking to move out of more densely populated areas, 47% have an interest in purchasing in the suburbs and 25% of respondents have a desire to be in small towns. Buyers are eager to find a new home to meet here needs, but there’s a big challenge in the market; a lack of homes available to purchase. Danielle Hale, Chief Economist at realtor.com explains:
“The realtor.com June Housing Trends Report showed that buyers still outnumber sellers which is causing the gap in time on market to shrink, prices to grow at a faster pace than pre-COVID, and the number of homes available for sale to decrease by more than last month. These trends play out similarly in the most recent week’s data with the change in time on market being most notable. In the most recent week homes sat on the market just 7 days longer than last year whereas the rest of June saw homes sit 2 weeks or more longer than last year.”
In essence, home sales are picking up and buyers are purchasing them at a faster rate than they’re coming to the market. Hale continues to say:
“The housing market has plenty of buyers who would benefit from a few more sellers. If the virus can be contained and home prices continue to grow, this may help bring sellers back to the housing market.”
If you’re considering selling, reach out to me today, as you are likely be able to sell at the best price, in the least amount of time, and will be able to take advantage of the low interest rates available right now when buying your new home.