Today I want to share some good news and some bad news for homeowners who are thinking about selling. Home values are still rising, an inventory shortage has brought a pent up buyer demand, but will it last through the summer?
Good News for Sellers
We are in a sellers’ market in almost all price ranges.
Unfortunately, many homeowners have delayed listing their properties. As you can see in my weekly coronavirus market updates, new listings have been almost 20% lower than in 2019. The inventory of homes for sales has dropped to 2,805 at the end of May, lower than ever before.
At the same time buyer demand is through the roof. For the past 2 weeks there were more live showing requests than during the same time last year.
Our agents report of fierce bidding wars for most listings. It’s gotten to a stage where buyers offer 10% over list price and $20,000 cash to cover a likely appraisal deficiency. And they still may lose, because they are competing against a cash buyer.
Now is definitely THE best time to sell.
Why Home Values Will Continue to Rise for Now
I personally expect a strong second half of 2020 for 3 reasons:
- Pent Up Demand: The spring buying season got delayed by 3 months due to the pandemic. Most buyers who were in the market for a house earlier this year still want to buy.
- Relocation: Stay at home orders have stopped corporate relocations during the pandemic. Now these buyers are back which should bode well for more expensive homes.
- Lack of Inventory: There are not enough homes on the market. More millennials are transitioning from renting to owning, while new construction is not catching up.
Bad News on the Horizon?
The summer housing boom may be short lived. No one knows how long prices will rise and how quickly the economy will recover from the Covid pandemic.
As a matter of fact, Corelogic, a company that tracks housing data for the mortgage and real estate industries, predicts that home values will decrease next year.
What Are You Waiting For?
Click the button below to schedule a short zoom call to discuss the value of your home and how I can help you sell it while observing Covid-19 safety rules.Schedule Your FREE Zoom Call
If you have any thoughts of selling this year, call or text me 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.