As we head further into fall, let’s review the facts: There has been a massive surge in both sales and home prices. When COVID-19 first swept the country, the transaction count for real estate fell through the floor; people were hesitant to do much of anything, let alone put their home on the market. Don’t forget there was also a short period where we Realtors weren’t even allowed to show houses! Naturally, things got a whole lot trickier for almost every industry in the country, real estate included.
However, when summer hit, the market came back with a vengeance. Transactions were happening left and right, and sales prices shot through the roof. We didn’t just get back in line with 2019’s performance, we exceeded it. Far more people have been buying and selling homes this year than last, and there are a few key factors that have been driving this impressive recovery.
For one, interest rates have remained absurdly low, which gives homebuyers more purchasing power in the market, so it’s no wonder that demand has been sky high. On top of that, inventory in our market is very, very low. Throw these two ingredients into a pot together and you have the perfect recipe for rising home prices. Our market has been flaming hot as of late. The big question now, of course, is, “Will this amazing market continue?”
The answer is sort of a mixed bag; there are several reasons to believe our market will stay hot into 2021, but we should also take note of a few storm clouds gathering on the horizon. Due to the COVID-related rise in unemployment, roughly one-third of renters across the country are having trouble paying their rent, and a similar number of homeowners have sought help on their mortgage payments. These folks may or may not have gotten their jobs back or found a better financial footing since then.
“We’re going to see some defaults and evictions hit neighborhoods nationwide.”
We’re going to see some defaults and evictions hit neighborhoods nationwide. Will it be enough to make a massive difference in the market though? Well, that’s the other looming question. It will likely have at least some kind of effect, even if that means a slight slowdown in the rapid appreciation we’ve been seeing. It’ll be interesting to see how exactly things play out in our areas as we move into 2021.
Here’s the bottom line though: No one knows exactly what the future will hold, but we do know the market is extremely hot right now—don’t miss this golden opportunity for maximizing your home sale if you’ve been thinking about listing. You can sell quickly for top dollar before the market really gets hit by any delayed negative effects.
If you do seize the moment, be mindful of recent difficulties with appraisals in our market. With properties appreciating so rapidly, it has been a bit tougher to get homes to appraise. If you work with a skilled listing agent though, you’ll be equipped to handle that scenario.
If you have any questions about how to take advantage of things while they’re still hot, reach out to us on the web or give us a call. We’re always here to help!
