Back in July, the real estate industry saw an uptick in the housing market. Listing prices were up about 13% while closed sales prices were up 6%. This uptick is unusual to see during this time of year as usually, the industry begins to see a downshift as people turn their eyes from homes to vacation and the start of school.
As sellers begin to set higher prices for their homes, buyers are beginning to meet them. Because this year was so different from years we have seen in the past; it’s not surprising that we are witnessing these significant upticks throughout the real estate market. Typically families are saving for their annual summer vacations, which means they don’t intend on looking or buying a house during the summer months.
This year, though, many canceled their summer plans and buyers were once again lured into the hunt due to low mortgage rates. You could say that the market has been just as hot as this summer! (And it doesn’t look like things will be slowing down any time soon.)
New Listings Slow to Appear
Unfortunately for home buyers, listings have still been a bit slow to appear. While the market is booming, homeowners have been hesitant to list their homes because they fear that the state of society would hurt home buying demand and depress value. They are beginning to see that they have nothing to worry about, but it is a slow-going process. Hopefully, as we move forward into the future (even into 2021), we will see the lag catch up and find that sweet spot between too many and not enough listings.
Hot Competition = Buyers Pull Out All Stops
With so much competition for so few homes, homebuyers employ dramatic measures to make their offers stand out in bidding wars. Rent-back agreements have become extremely popular. A rent-back agreement allows the seller to stay in the house for some time after the sale to give the seller extra time to find a new home. Strategies can go to far more significant and unusual lengths. Talk to your real estate group (Verity Group) to see what will give you the edge on your sale.