As the social distancing restrictions are loosening, home buyers and sellers are re-engaging in the real estate market. While there was already a shortage of homes on the market, we saw a drop in the number of new listings compared to the year prior. Interest rates are at historic lows for home buyers and the number of home purchase loan applications are up with inventory not keeping up with demand. At the same time, some buyers are withdrawing from the real estate market due to job loss and the lack of down payment. Inventory shortage combined with current interest rates is at times resulting in multiple offers on the average or median priced homes in some markets. Days on the market for home sellers has increased with sellers being reluctant to reduce prices and buyers expecting lower prices. Homeowners currently living in cities may seek to live in the suburbs or more rural areas. Top home buying trends are currently: more space, more square footage of living area, number of rooms, ability to have a home office, and private outdoor spaces.
Hamann Real Estate
DRE # 01793963
Our home has become more important than ever. We are acutely aware of where we live, who we live with and whether or not the homes we live in are working for us. At the start of 2020, we were expecting a strong spring market based on increased sales prices (up 3-4% from 2019), low inventory and low interest rates. While we have seen a shift since COVID-19 – it is not what we expected. Interest rates are at 30-year lows – driving more buyers into the market, and competition among buyers is strong right now. Safety, sq footage and outdoor living has become a top priority. We are seeing people leaving large cities for remote and safe homes.
So what does the future hold for us? Forbearance and unemployment could cause more foreclosures in the short term. Inventory would increase and the market could shift to favor buyers. With that being said, we are still anticipating a HOT summer market with a need for more inventory. Real Estate continues to be an American Dream and a great investment. There’s no place like home – especially now!
Ridge Real Estate Group | Compass
Realtor | DRE # 01998765