We have been completely transparent about the current seller’s market we are in, and now we have the data to back up these claims.
According to a report from ATTOM Data Solutions, in the second quarter of 2020, sellers benefitted from a gain of $75,971 on the average home sale. This number is up $66,500 from the first quarter of the year.
This equates to a 36.3% return on investment compared to 34.5% in the first quarter of 2020.
So, what does this mean, and what contributed to this spike in numbers? Read further to find out!
What the experts are saying
Todd Teta, chief product officer at ATTOM Data Solutions, says, “The housing market across the United States pulled something of a high-wire act in the second quarter, surging forward despite the encroaching economic headwinds resulting from the Coronavirus pandemic. Profit margins hit new records as prices kept climbing, with few indications that the impact of the virus would topple the market.”
This is partially due to the low supply in houses on the market. With low mortgage rates, it has been more difficult than usual to meet buyer demand.
Additionally, there are sellers who have temporarily taken their homes off the market due to apprehension of the coronavirus and possible economic implications.
This has given current sellers the upper hand when it comes to pricing their homes and negotiating multiple competing offers.
Our metropolitan neighbor, Tampa, saw an 11.9% increase in home prices despite the pandemic.
In fact, most metro areas saw an increase of at least 6 percent! Some areas, such as Detroit, even reported over a 20% increase in median home prices.
According to Realtor.com, Lakeland’s current Sale-to-List Price ratio is 100%. Not only that, but it is also reported that the median list price of homes in Lakeland trend up 4.1% year-over-year.
The bottom line
With rising listing prices and home values, scarce inventory, positive sale-to-list price ratios, and less competition, it seems that everything is pointing in the seller’s favor.
If you have simply only thought of refinancing your home due to fear of selling during a pandemic, think again. You could reap so many benefits and find yourself with an unexpected profit that will help you get into your dream home!
Don’t forget to read through our other blogs to gain more information about the current state of our Real Estate market. When you are ready to pocket your profit, contact us here. We are available and standing by to assist you with all your needs and questions.