Homebuying has been on the rise over the past few months, with record-breaking sales powering through the market in June and July. Buyers are actively purchasing homes, and the momentum is continuing into the fall. It is, however, becoming harder for buyers to find homes to purchase. If you’ve been thinking about selling your house, the coming weeks might just be the timing you’ve been waiting for. According to the Pending Home Sales Report from the National Association of Realtors (NAR):
“Pending home sales in July achieved another month of positive contract activity, marking three consecutive months of growth.The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001.”
This means that for the past several months, buyers have signed an increasing number of contracts to purchase homes – well above where the market was at this time last year. Lawrence Yun, Chief Economist at NAR notes:
“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market…Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”
Below is a graph that shows the impressive recovery of homes sales compared to previous years. The deep blue v marks the slowdown from this spring that turned into an exponential jump in sales that followed through the summer, skyrocketing above years past:
What Does This Mean for Sellers?
If you were thinking about putting your house on the market in the spring, but decided to wait due to the health crisis, it may be time to make your move. Buyers are in the market right now. With so few homes available to purchase, homeowners today are experiencing more bidding wars, creating an optimal time to sell.
Is This Trend Going to Continue?
As CNBC notes, there are no signs of slowing buyer demand this fall:
“The usual summer slowdown in the housing market is not happening this year. Buyers continue to show strong demand, spurred by the new stay-at-home world of the coronavirus and by record low mortgage rates.”
Danielle Hale, Chief Economist at realtor.com,concurred:
“In a typical year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we move into the fall. Due to a delayed spring season and low mortgage rates, we could see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales will depend on whether sellers participate or decide to stay on the sidelines.”
As Hale mentioned, homeowners who are willing to sell their houses right now will play a big role in whether the trend continues. The market needs more homes to satisfy ongoing buyer demand. Maybe it’s time to leverage your equity and move up while eager home shoppers are ready to purchase a house just like yours.
If your current home doesn’t meet your family’s changing needs, let’s connect to help you sell your house and make the move you’ve been waiting for all year.
Mark Hughes is the President and curator of Bungalows and Cottages LLC, Blog, and Networks. Mark's mission is to bring the design, history, and lifestyle of smaller comfortable iconic American bungalows and cottages to everyone. Mark is a real estate broker and former industry executive who once ranked in the top 1% of agents worldwide for sales and went on to lead two of the largest real estate companies in the Western US. Small house. Big Life.
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Judy Hughes is a seasoned residential real estate professional with over 25 years of experience in the industry. She has always had a love for homes and design, which led her to pursue a career in real estate. In her first year as a Realtor, Judy quickly established herself as a young market go-getter, garnering the attention of a large national bank that chose her as their preferred relocation agent. Her clientele continued to grow as did her love for the business. Through the years, Judy has been licensed and practiced in several states, but now resides and specializes in Leisure World of Seal Beach. She brings with her an extensive knowledge of the housing market and is passionate about providing excellent customer service.
Whether it is packing and moving information, health and safety recommendations, remodeling, or major renovations; she can help. Judy is eager to utilize her market knowledge and practical moving experiences to assist you with a smooth and profitable purchase or sale. She combines thorough market research and today’s fastest digital and mobile technologies to ensure her customers are first to know about market opportunities and movement. Judy executes a dependable buyer delivery system for her sellers leveraging Seven Gables’ global property syndication networks. She is known for her tenacious follow-through and her selling strategies. Put Judy’s passion for Leisure World real estate to work for you. When she’s not helping clients buy or sell their homes, you can find Judy spending time with her family and friends or enjoying one of her many active hobbies.
Will covers the East Los Angeles Market for Bungalows Cottages.