With stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping back into the market. After many homebuyers and sellers put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate. Don't wait and miss out...
Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes: “Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”
Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually. The pent-up demand for real estate is huge!
What’s the Opportunity for Home Buyers?
Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates: “For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”
Home mortgage rates are at such low levels there’s more incentive than ever to buy a home or a second home this summer.
What’s the Opportunity for Home Sellers?
Finding a home to buy, however, is still a challenge. Many home sellers removed their homes from the market because of Covid-19. Though more people are now putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.
According to last week’s Weekly Economic and Housing Market Update from realtor.com: “Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”
If you’re thinking of selling your house this summer, this is probably the best time to get the most amount of money for your home. With so few homes on the market for homebuyers to purchase, we are continuing to see multiple offers on homes for sale in Anacortes and throughout Skagit County. We follow strict protocol and we prescreen all buyers. We do virtual showings and virtual open houses to reduce in-person contact when showing your home. If you are high risk and do not want people in your home right now, rest assured that there are always buyers and our proven marketing programs sell homes year-round. When you are ready to sell your home, THE GROESBECK GROUP will be here to help you get the highest price that the market will bear at that time.
If you’re thinking of selling your home, it is likely that buyers are eager to find a home just like yours. Call today and we can discuss the strategy that is best for you and your goals.