Well, so far it’s been a challenging year for buyer’s in our Triangle market with Covid rearing its ugly head and complicating all of our lives, in the world, not just here in our sweet bubble of the Triangle.
Realtors in some areas like Durham were restricted in showing homes which meant Durham came to a stand still for a while (plus Durhams Deeds office got hacked so that was another headache). Wake County allowed Realtors to work as we are/ were considered ‘essential’, well some of us are, lol…..however, many of my seller clients decided to hold back on going on the market because they were still living in their homes and very uncomfortable with strangers walking through due to Covid concerns. We eventually put them on the market for the public to see and buy. So our spring market basically turned into a summer market.
The number of homes for sale is still under more ‘normal’. Our Triangle area sellers are hesitantly dipping a toe in to try out the ‘water’. Some are waiting for this to be less than a health threat. And that is what is driving this ‘Seller’s Market’ As you know know when there is not a lot of inventory and more buyers than inventory, prices jump.
Javier Vivas, Director of Economic Research at realtor.com recently stated:
“After five long months, sellers are back in the housing market; while encouraging, the improvement to new listings is only the first step in the long road to solving low inventory issues keeping many buyers at bay.”
According to the National Association of Realtors available inventory is well below where it needs to be to satisfy buyer interest. The National Association of Realtors (NAR) stated:
“Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.”
Realtors will talk in ‘months’ regarding inventory and right now we have about 4 months, nationally, when we need about 6 months to keep up with the buyer demand. But…..keep this in mind, some sellers when they read this, think that means every home, not so…..you can still be sitting there with a great house and not selling it. Listen to your agent when she shows you recent sales and suggests a price range. Its not about what you want, its about what the market will bear. Any as mentioned , some sellers are starting to return to the game. Realtor.com explains:
“The ‘housing supply’ component – which tracks growth of new listings – reached 101.7, up 4.9 points over the prior week, finally reaching the January growth baseline. The big milestone in new listings growth comes as seller sentiment continues to build momentum…After constant gradual improvements since mid-April, seller confidence appears to be reaching an important milestone. The temporary boost in new listings comes as the summer season replaces the typical spring home buying season. More homes are entering the market than typical for this time of the year.”
This is Good For Sellers Because…….
More buyers, less inventory can create quick sales, and sometimes multiple offers. Don’t wait for other sellers to list their homes before you do, contact me today and let’s discuss listing as soon as possible so you can beat the curve. As soon as more sellers jump into this market, buyers will start to settle down and start opting to choose, not jump into multiple offers or overbid. Now is a great time to sell.
Whats a Buyer to Do in this Market?
Its so challenging in different price points to buy in this current environment with low inventory and covid.My suggestion, be more open to what is out there and remember these current mortgage rates are at a historic level.
In all the years and hundreds of transactions I have worked on, I suggest that if you are looking to sell or buy, contact me and lets explore your options in this market and develop a strategy to get you into your new home sooner rather than later.
Contact Sharon Lewis
Let’s Get You Moving!