Here’s why both buyers and sellers have good reason to act now.
Inventory is once again at the forefront of our discussion over the ongoing impact of COVID-19 on our market. If we look at the second of June (the latest data set we have at the moment), the number of new homes listed was down 11% over the same week of the prior year. Pending listings, on the other hand, were up about 30%, meaning more homes are selling than are coming to market.
This inventory problem is being compounded by the fact that work-at-home arrangements adopted by many companies means fewer relocations. Relocation listings are down 33% year over year. We’re still seeing homes selling fast (some within one to two days) and above asking price.
There’s talk of a second wave of this virus hitting soon, and God willing that won’t lead to a second shutdown, but if it does, there will once again be a huge pause in the market. That’s why my advice is to strike while the iron’s hot. If you’re planning to sell your home within the next year, there’s really no better time than right now.
The question for sellers then becomes, “Well, if inventory is so low, will I have trouble finding my next home?” That’s a valid concern, and the reality is that you’ll probably pay more for a house today than you would have 12 months ago. The equalizer, however, is that interest rates are insanely low. Last week, they dipped below 3% for the first time in recent history. So, while your price will be higher, the amount of interest over the life of your loan will be significantly less, which gives you the opportunity to make your monthly payments palatable.
It’s still very affordable to get people into homes, and we’re making it happen every week. Overall, there are still a ton of buyers in the market, and inventory continues to dwindle, making it an exceptional time to be a seller.
If you have any questions about this or any other real estate topic, reach out by phone or email. I’d love to hear from you.