It appears that nay-sayers and scryers of doom were incorrect: COVID did not kill the housing market. In fact, even though inventory is significantly down, demand is as strong as it ever was. Let’s have a look at three telling statistics to support this assessment.
Home-buying demand now 5.5% higher than pre-pandemic
In the last five weeks, home-buying demand has come roaring back. As of May 10, demand was 5.5% higher than it was before the pandemic on a seasonally adjusted scale. The sharp recovery in home-buying demand is powered by record-low mortgage rates and the loosening of stay-at-home orders in some states. After two months of waiting for the other shoe to drop, buyers who are still employed are poised to look for deals precipitating from the COVID chaos.
Inventory is down 24% year over year
Despite the fact that the total number of new listings has been steadily increasing, the demand for homes is so great that the supply cannot keep up. Many sellers who are venturing back into the market need to sell due to the financial impact of the virus, while others are afraid of a slow recovery and want to sell while the market is in their favor.
Median listing prices are up 5%
Bidding-war battle royals are back. Any agent worth his salt is advising serious buyers to assume they have stiff competition, bid aggressively and use tactics such as an escalation clause to help their offer rise to the top of the pile. Buyers are serious about taking advantage of the lowest interest rates in recorded history, but the real winners are the sellers who are seeing their homes go for thousands over asking with terrific terms.
The market is roiling, but there is a silver lining for those who are in a position to capitalize on the chaos. Each buyer and seller have their own reasons for being in the market here and now, and, especially here and now, it is more important than ever to have a local expert on your side. Regardless of your motivations, Sellstate Alliance Realty & Property Management is here to provide the experience and local knowledge necessary to win in today’s highly competitive real estate market. If you have questions, comments, or concerns please do not hesitate to contact us.