Many industries have been destroyed by the economic downturn caused by the COVID-19 virus. Real estate is no one of them.
Mark Fleming, Chief Economist by First American, only reported:
“Since hitting a low point during the early stages of the pandemic, the only major industry showing immunity to the economic effects of the coronavirus is housing. Housing has experienced strong V-shaped recovery and is now surpassing pre-pandemic levels.”
Buying demand is still strong in the fall. Showing Time, which tracks the average number of buyers in homes, only announced uncle shopping displays grew 61.9% compared to the same time last year. They continued:
“Usually real estate activity starts to slow down in late summer, but this year it peaked in July, August and September.”
There is One Great Challenge
Buying demand is so high that the market is running out of available homes for sale. Just last week, realtor.com reported:
“Since the onset of the COVID pandemic in March, nearly 400,000 fewer homes have been listed compared to last year, leaving a gaping hole in U.S. housing.”
La National Association of Real Estate Agents (POMEGRANATE) revealed that, as home sales explode, the inventory of existing homes for sale drops dramatically. Below is a graph of an existing inventory (September issues not yet available):Home builders are increasing construction, but they cannot keep up with the high demand. Bill McBride, founder of the Calculated Risk a blog, discussing an inventory of newly built houses, notes:
“The months of supply have decreased to 3.3 months … This is the all-time record of low months of supply.”
What does this mean for vendors?
Anyone thinking of putting their home on the market shouldn’t wait. A seller will always negotiate the best deal when demand is high and supply is limited. Just such a situation in the real estate market today.
Next year, when the pandemic is hopefully behind us, there will be many more properties coming to market. Don’t expect that increase in competition in your neighborhood. Now is the time to sell.
Let’s connect today to buy your house at this optimal time to sell.
Content previously posted in Keep Current Things