Recent studies from the end of July and beginning of August are out and here is what they are telling us:
New listings are back to pre-pandemic numbers, home values are increasing, and bidding wars are still occurring.
This surely confirms the HOT seller’s market we have been writing about, but what else do these numbers mean?
According to Realtor.com ®’s latest Weekly Recovery Report, all components of housing activity are growing above their pre-COVID levels.
This includes new listing, housing demand, asking prices, and pace of sales.
Seller confidence is up which means so are new listings. While these numbers have recovered to what we were seeing before the pandemic, we are still seeing lower numbers compared to previous years.
In fact, inventory is down 36%. This is great news for sellers and means more competition for buyers.
Higher home prices?
On the contrary, home prices have been steadily rising year over year. In the past year alone listing prices grew almost 10 percent.
Not only are home values appreciating, but buyer demand is up. Low mortgage rates have first time home buyers rushing to lock in a good deal. In turn, sellers can up their price tag since they have the upper hand.
Read more about how home sellers’ pockets are benefitting from surging pandemic home sales.
What about bidding wars?
Are bidding wars still happening? How long will they take place for? How can I be sure to pick the right offer? How do I win a bidding war? We have the answers!
According to Redfin, 56% of their single-family home sales faced a bidding war in July. The competition is surely still heating up amongst buyers.
They also report that suburban areas and small towns are entering, and dominating, these ranks in numbers. This leads us to conclude that the pandemic has led homebuyers to desire more remote and less expansive living quarters.
As long as mortgage rates remain low and so does the inventory on the market, you can expect to see multiple competing offers.
For advice on how to come out on top during a bidding war, we have a WHOLE web series! Check it out here.
And if you are a seller, beware of these sneaky ways buyers may try to trick you while discussing an offer.
If we have not convinced you yet that NOW is the time to sell, see what your home is worth and decide if it is the right time for you.