Homebuying has been on the rise within the last few months, with record-breaking sales powering through the industry in June and July. Buyers are actively purchasing homes, and the momentum is continuing into the fall. It’s, however, becoming harder for buyers land to get homes to purchase. If you’ve been thinking about selling your property, the coming weeks might you need to be the timing you’ve been waiting for.
Under 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 centered on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 adds up to the level of contract activity in 2001.”
This means that for the past almost a year, buyers have signed an increasing quantity of contracts to purchase homes – well above where the industry was at this time a year ago. Lawrence Yun, Chief Economist at NAR notes:
“We’re witnessing a genuine 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 single 10 new listings.”
Below is just 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 summertime, skyrocketing above years past:
What Does This Mean for Sellers?
If you were thinking about putting your property in the marketplace in the spring but decided to hold back because of the health crisis, it could be time to create your move. Buyers are on the market right now. With so few homes available to purchase, homeowners today are experiencing more bidding wars, creating an optimal time for you to sell.
Is This Trend Going to Continue?
As CNBC notes, you will find no signs of slowing buyer demand this fall:
“The usual summer slowdown in the housing market isn’t happening this year. Buyers continue to exhibit strong demand, spurred by the newest stay-at-home world of the coronavirus and by record-low mortgage rates.”
Danielle Hale, Chief Economist at realtor.com, concurred:
“In a normal year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we transfer to the fall. Because of the delayed spring season and low mortgage rates, we’re able to see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales is determined by whether sellers participate or decide to keep on the sidelines.”
As Hale mentioned, homeowners who are willing to sell their houses today will play a big role in whether the trend continues. The industry needs more homes to satisfy ongoing buyer demand. Maybe it’s time for you to leverage your equity and progress while eager home shoppers are ready to purchase a house just like yours.