In a recent survey of home sellers by Qualtrics,
87% of respondents said they were concerned their home won’t sell
because of the pandemic and resulting economic recession. Of the
respondents, 51% said they are “seriously worried.” That concern seems
reasonable considering the current condition of the economy. The data,
however, is showing that home purchasers are still very active despite
the disruptions American families have experienced this year. The latest Existing Home Sales Report published by the National Association of Realtors (NAR) revealed that 340,000 single-family homes sold in this country last month. NAR’s most recent Pending Sales Report (homes going into contract) surpassed last month’s number by over 44%, which far exceeded analysts’ projections of 15%. ShowingTime reported
that appointments to see homes (both virtually and in-person) have
increased in every region of the country and are up 21.4% nationwide
over the same time last year. While buyer activity is surging, the number of listings has fallen to an all-time low. Zelman Associates, in their latest residential real estate report,
revealed that housing inventory as a percentage of households has
fallen to 1.2%, which is half of the long-term average and lower than
any other time in our history. With buyer demand growing and the supply of available homes
shrinking, purchasers are again finding themselves needing to outbid
other buyers. NAR, in a recent blog post, revealed: “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).” Bidding wars guarantee houses sell quickly at a price near or even slightly over the listing price. If you’re thinking of selling, don’t be concerned about putting your
house on the market right now. There’s no better time to sell an item
than when demand for it is high and supply is low. It is exactly at that
time when you will negotiate your best possible deal.Bidding Wars Heating Up Again
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