Homebuying has been on the rise over the past few months,
with record-breaking sales powering through the market in June and July. Buyers
are actively purchasing homes, and the momentum is continuing into the fall. It
is, however, becoming harder for buyers to find homes to purchase. If you’ve
been thinking about selling your house, the coming weeks might just be the
timing you’ve been waiting for.
According to the Pending Home Sales Report from the National
Association of Realtors (NAR):
“Pending home sales in July achieved another month of
positive contract activity, marking three consecutive months of growth.
The Pending Home Sales Index (PHSI), a forward-looking
indicator of home sales based on contract signings, rose 5.9% to 122.1 in July.
Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the
level of contract activity in 2001.”
This means that for the past several months, buyers have
signed an increasing number of contracts to purchase homes – well above where
the market was at this time last year. Lawrence Yun, Chief Economist at NAR
“We are witnessing a true V-shaped sales recovery as
homebuyers continue their strong return to the housing market…Home sellers are
seeing their homes go under contract in record time, with nine new contracts
for every 10 new listings.”
Below is a graph that shows the impressive recovery of homes
sales compared to previous years. The deep blue v marks the slowdown from this
spring that turned into an exponential jump in sales that followed through the
summer, skyrocketing above years past:
What Does This Mean for Sellers?
If you were thinking about putting your house on the market
in the spring, but decided to wait due to the health crisis, it may be time to
make your move. Buyers are in the market right now. With so few homes available
to purchase, homeowners today are experiencing more bidding wars, creating an
optimal time to sell.
Is This Trend Going to Continue?
As CNBC notes, there are no signs of slowing buyer demand
“The usual summer slowdown in the housing market is not
happening this year. Buyers continue to show strong demand, spurred by the new
stay-at-home world of the coronavirus and by record low mortgage rates.”
Danielle Hale, Chief Economist at realtor.com, concurred:
“In a typical year in the housing market, buyer interest
begins to wane before seller interest causing the usual seasonal slowdown as we
move into the fall. Due to a delayed spring season and low mortgage rates, we
could see buyer interest extend longer than usual into the typically quieter
fall. Whether this means more home sales will depend on whether sellers
participate or decide to stay on the sidelines.”
As Hale mentioned, homeowners who are willing to sell their
houses right now will play a big role in whether the trend continues. The
market needs more homes to satisfy ongoing buyer demand. Maybe it’s time to
leverage your equity and move up while eager home shoppers are ready to
purchase a house just like yours.
If your current home doesn’t meet your family’s changing
needs, let’s connect to help you sell your house and make the move you’ve been
waiting for all year.