“With so many buyers looking for homes to purchase and so few houses for sale right now, there’s a disconnect between supply and demand.”
With businesses reopening throughout the country and some experts indicating early signs of a much-anticipated economic recovery, more homebuyers are actively entering the housing market this summer. Today, housing is truly driving the U.S. economy forward. With so many buyers looking for homes to purchase and so few houses for sale right now, there’s a disconnect between supply and demand. This imbalance is pushing home prices upward while driving more bidding wars and multiple-offer scenarios. Danielle Hale, Chief Economist at realtor.com explains:
“People are surprised that prices are rising, not falling, because in the last recession home prices fell, the difference this time is the severe shortage of homes for sale…We are seeing bigger price increases with [a limited] number of homes…That is likely to lead to more competition and potentially multiple offers and bidding wars.”
According to the recent Realtors Confidence Index (RCI) survey conducted by the National Association of Realtors (NAR), this trend is growing:
“On average, there were about three offers on a home that closed in May, up from just about two in April 2020 and in May 2019 (2.3 offers).”
HousingWire also indicates:
“42% of homeowners who made a purchase during the January to May time period ended up in a bidding war, demonstrating the strong demand for homes amid low inventory.”
With more people returning to work we’ll continue to see the number of interested buyers increase. So, if you’re among the many people looking for a home to buy this summer, it’s important to ensure you have the right guidance from the start. This way, you make sure your offer stands out from the crowd when it really counts. Here are two tips to follow.
1. Hire a Trusted Local Expert
A trusted local real estate professional matters more than ever right now, as noted in a recent survey shared by NAR. In fact, according to respondents, 54% of buyers and 62% of sellers indicated that “Particularly during the pandemic, a real estate agent’s guidance is especially valued.”
We’re not in a normal market. We are in one of the greatest health crises our nation has ever seen. The pandemic has had a dramatic impact on the journey consumers must take to purchase a home. To successfully navigate the landscape today, you need a true expert on your side.
2. Get Pre-Approved for a Mortgage
When there are more buyers than sellers on the market, the process to find a home becomes much more challenging. One way to show you’re serious about buying a home is to work with a lender to get pre-approved for a mortgage before starting your search. With a pre-approval letter, sellers will see your true desire to buy this year, potentially helping your offer rise to the top.
Bottom Line
If this is the year you’re ready to buy, let’s connect to get the process started so you can make sure your offer is a strong one when the competition heats up.
To view original article, visit Keeping Current Matters.
What You Need to Know About the Mortgage Process
Your local professionals are here to help you determine how much you can afford, so take advantage of the opportunity to learn more.
You Need More Than a Guide. You Need a Sherpa.
Hiring an agent who has a finger on the pulse of the market will make your buying or selling experience an educated one.
Homeownership is the Top Contributor to Your Net Worth
There are financial and non-financial benefits to owning a home. Let’s talk about how we can help you become a homeowner.
What FICO® Score Do You Need to Qualify for a Mortgage?
If you’d like to understand the next steps to take when determining your credit score, let’s get together so you can learn more.
62% of Buyers Are Wrong About Down Payment Needs
Don’t let a lack of understanding keep you and your family out of the housing market. Let’s get together to discuss your options today.
5 Homebuying Acronyms You Need to Know
“Learning the lingo of homebuying is an important part of feeling successful when buying a home.”