Any real estate agent will tell you: summer is traditionally the best time to sell your house. Children are out of school, making for a smoother transition to a new district and easier moving conditions. The period between May and September are some of the busiest months in real estate. However, summer 2020 real estate is, in many aspects, unlike any others.
If you were planning to sell your property this summer, you most likely have a lot of questions. Should you go ahead as planned and list your property? Will it be better to wait and see until the COVID-19 epidemy is over? Many people do not have the option of differing their move date, so what can they expect when trying to their home this summer?
Here are some real estate market trends every house buyer or seller should be aware of for the summer of 2020.
Home purchases are on the rise this summer 2020.
Many people put their house-hunting plans on hold at the height of the epidemy. However, as many states are relaxing their stay-at-home orders, house shopping is on the agenda again. Although the hot season for real estate started later than usual – it typically begins in late spring – it is now in full fling and still growing.
However, the market is still quite different from previous years. One key factor is the lack of inventory. Although buyers are back on the hunt, many would-be sellers have reviewed their plans, and the number of houses for sale is limited. According to Realtor.com, national inventory declined by 27.4 percent year-over-year.
If you are thinking about selling your house in the summer, it is now a good time since competition is limited. The dichotomy between offer and demand has led to an increase in housing prices. The median national home listing price increased by 5.1 percent year-over-year, rising to a new high of $342,000 in June. However, you risk running into some issues if you are considering purchasing a new property this summer as well. Houses also tend to stay on the market longer than they usually do this time of year, with an average of 72 days on the market, 15 days longer than in 2019.
Mortgages applications are increasing.
Another positive sign of buyers’ motivation and market recovery is the notable increases in mortgage applications. In fact, the Mortgage Bankers Association has consistently reported an increase in home loan applications since early May.
If you are considering buying a house or refinancing your property, now is a great time. According to Mark Fleming, the chief economist at title insurer First American Financial, the mortgage rates are extremely low. They are predicted to remain low for the foreseeable future, possibly into 2021. However, qualifying for a home may be harder than ever, as lenders are hesitant of approving borrowers whose job security may be at risk.
The bump in the real estate market will likely not last.
Despite these encouraging signs, experts remain extremely cautious regarding the long-term recovery of the real estate trends. Many consider that the bump is only temporary and will not last past the fall. The real estate market is by nature seasonal, and the activity of the summer likely masks some of the issues that will eventually catch up.
The global recovery of the economy is still a work in progress. Many workers have been laid off or are furloughed with little prospect of getting back to work. The future of some industries, such as travel, transportation, and entertainment, remains in the balance. With the COVID-19 still raging in many states and the perspective of a second wave, Americans are hesitant to make long-term plans. The Presidential elections of November 2020 also add to the uncertainty factor.
If you need to sell your home quickly, it is best to remain cautious in this uncertain real estate market. If your listing does not generate much interest rapidly, you may need to explore alternative options to avoid finding yourself in a problematic situation in September. OfferHome buys houses for cash and can offer a quick closing regardless of condition. Contact us today to see if it may e a good fit for your property. The summer 2020 real estate has been up and down, but we are confident we can help you sell your home today!