Current Buyer Demand Higher Than Last Year
Demand from buyers for real estate has been increasingly stronger over the past several months breaking sales records during the months of June and July. Buyers are actively purchasing properties, and the thrust is expected to continue into the Autumn months. With limited inventory of properties for sale, buyers are finding it more and more difficult to find suitable homes. On the other hand, if you are a seller and would consider an offer on your home, this just may be the perfect opportunity for you to test the waters.
The National Association of Realtors® (NAR), Pending Homes Sales Report shows:
“Pending home sales in July achieved another month of positive contract activity, marking three consecutive months of growth.
The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001.”
What this tell us is that buyers have executed a significant total of contracts to purchases during the past several months. The total of contracts is much higher than compared to the same period last year.
Lawrence Yun, Chief Economist at NAR notes:
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market…Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
The graph below illustrates the dramatic rebound of home sales as compared to years past. The deep blue V shows the deceleration from earlier this spring that changed into an aggressive increase in home sales that spiked continued thru the summer months rising way above previous years.
How This Affect Home-Sellers
If the Covid health pandemic caused you to wait on listing your home for sale, it may be the opportune time to rethink your strategy. With inventory at record lows, meaning less competition, and strong buyer demand. the stage is set for the perfect time to sell. Many home sellers are experiencing multiple offer situations, which ultimately drives the home price upward.
Will This Trend Continue?
There are no tell-tale signs of buyers putting on the breaks as we enter into the autumn months. According to CNBC article:
“The usual summer slowdown in the housing market is not happening this year. Buyers continue to show strong demand, spurred by the new stay-at-home world of the coronavirus and by record low mortgage rates.”
Danielle Hale, Chief Economist at realtor.com, agreed
“In a typical year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we move into the fall. Due to a delayed spring season and low mortgage rates, we could see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales will depend on whether sellers participate or decide to stay on the sidelines.”
If your family needs have changed, and you've outgrown your current home. let's connect today to discuss selling your home and upgrade to a more suitable family home in one of Fort Lauderdale's ideal neighborhoods like Coral Ridge, Coral Ridge Isles, Imperial Point, Poinsettia Heights, Victoria Park, Oakland Park and Wilton Manors. If you are looking to move to a waterfront community, you may like Rio Vista, The Landings, Sunrise Key or Las Olas Isles. Let's have a chat!
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.