Being that states are gradually lifting restrictions, data indicates homebuyers are jumping back into the market as well. After many families put their plans on hold due COVID-19, what we once called the busy spring real estate season is shifting into the summer. In 2020, the summer season will promote homebuyers.
Joel Kan, who has spoken at several of Apex’s Spring Housing Briefings, and is an Economist at The Mortgage Bankers Association (MBA) notes:
“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”
Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 99 points the week of June 14th. As we can see, more potential homebuyers are looking for homes virtually.
What is the Opportunity for Buyers?
Another reason buyer(s) are coming back to the market, even with forced unemployment and stay-at-home orders, is due to historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”
With mortgage rates at such low levels and states gradually beginning to reopen, there is more incentive than ever to buy a home this summer.
What is the Opportunity for Sellers?
Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their homes up for sale this month as compared to last month, current inventory is still well below last year’s level.
According to last week’s Weekly Economic and Housing Market Update from realtor.com:
“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% Year over Year, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower Year over Year, asking prices moved up 1.5% Year over Year.”
If you are thinking of selling your house this summer, now may be a great opportunity! With low inventory for buyers, this summer may be the time for your home to stand out. Trusted real estate professionals can help you list safely and effectively, keeping your family’s safety and needs a top priority. Buyers are looking, and you’ll want your home to be in tip-top shape!
If you are thinking of selling, many buyers are eager to find a home just like yours. Connect with Apex so that when your house is on the market and you’re looking for a new home, Apex can help find the perfect financing for your needs!
Topics: When Should I Buy a Home