Demand is surging in our market—here’s what that means for you.
Now that the shelter-in-place orders have relaxed, it’s time for a quick update on our summer real estate market.
Nobody expected the market to rebound like it did, but it’s crazy out there. There’s been a surge in demand, and according to a recent NAR survey, pending home sales skyrocketed 44.3% from April to May. That’s the largest one-month jump in the history of the survey, which dates back to 2001.
The pandemic, of course, is what’s primarily driving this surge. Another factor behind it, though, is the ultra-low mortgage rates we’re seeing. I thought they were low a couple of years ago, but now they’re getting ridiculous! If you’re looking to buy a home, now is the time because you’ll be able to qualify for a higher sales price (if that’s your intention). The average for 30-year fixed-rate mortgages stands at 3.13%, which is more than a 0.5% drop compared to last year. Don’t forget about refinancing, either. If you purchased a home four or five years ago at a 4% or 5% rate, it’s definitely worth your while to refinance your property.
The last factor driving this surge is the lack of inventory. Supply for existing homes at the end of May was 19% lower than it was in May 2019. Some sellers preferred to take their homes off of the market when the shelter-in-place orders were enacted, and that has created bidding wars for homes still on the market. People are overpaying for properties again.
What does all of this mean? In short, we’re in a strong seller’s market. Again, if you’re on the fence about selling, now’s the time to jump off and generate top dollar for your home. To quote the NAR survey I mentioned above: “As a result of lack of inventory, prices are rising, bidding wars are becoming common, and homes are selling quickly.”
It’s not clear how long this situation will last, so time is of the essence. If you contact the Krissy Mireles Team today, we’ll get you across the finish line no matter what your goals are. If you have any other real estate questions, feel free to reach out to us as well. We look forward to hearing from you.