How will the housing market react when the economy starts opening up next week? Boom or bust? This question is probably on your mind if you have considered buying or selling this year.
Many indicators point to a quick recovery of home sales. I believe we will even see a small boom over the summer, and I want to make sure you don’t miss this opportunity to sell right now.
The Real Estate Market Was Never in Trouble
Before Covid-19 closed down businesses and confined everyone to their private 4 walls, the housing market was buzzing. Inventory was low and there was huge demand for housing.
The Coronavirus put everything on hold for a few weeks. During the initial shock of stay-at-home orders scared buyers stopped house hunting for a few weeks. That’s changing rapidly as they have adjusted to the new normal.
While live showings are still lower than last year, online searches and virtual showings have exploded.
Find weekly updates on the housing market on my Coronavirus Resource Page.
Home Values and Pending Contracts Higher in April
If you are thinking about selling, rest assured that home values will remain stable over the next few months.
While home sales dropped by 19% in April, the average sales price was 4% higher than a year ago.
Pending contracts were 3% higher than a year ago, which points to a rise in closings in May and June.
New Listings Are Trending Up
Many homeowners delayed listing their properties in March and April.
In the past 2 weeks, however, we saw a remarkable turnaround. Sellers became more comfortable putting their homes on the market. Last Friday alone 197 homes were listed for sale. That’s twice the normal daily rate of new listings.
As the economy begins to re-open this week, I expect many more new listings.
That’s great news for buyers who are faced with a depleted inventory.
Why We Expect a Mini Boom Over the Summer
There are 3 main reasons:
- lots of pent-up demand,
- interest rates in the low 3% range, and
- the re-opening of the economy.
This creates a perfect storm for sellers. Buyers who delayed house hunting due to the pandemic will come back in force and try to catch up.
Don’t Miss the Summer Boom!
I strongly believe the housing market will heat up this summer. However, nobody knows what will happen this fall.
Will the virus come back and shutter the economy again?
Will high unemployment reduce the ability of potential buyers to get financing?
Will banks ease up on their lending requirements?
If you’ve been thinking about buying or selling DO NOT DELAY! Call or text me TODAY at (614) 975-9650.
Susanne Novak has been a Realtor since 2007. She is the broker and owner of RE/MAX 24/7 in the Dublin Historic District. Susanne typically helps 50-60 families each year with their real estate needs. She's your trusted advisor when you search for your dream home, and a skilled negotiator when she lists your property to get top dollar when you sell.