In real estate, it’s normal to see ebbs and flows in the market.
Typically, the summer months are slower-paced than the traditionally
busy spring. But this isn’t a typical summer. As the economy rebounds
and life is returning to normal, the real estate market is expected to
have an unusually strong summer season. Here’s how this summer is stacking up against the norm and what it means for you. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), inventory levels
have been rising since February of this year. Looking at the graph
below, there’s a clear upward trend, as shown in the green bars.
Currently, there’s roughly a 2.5 months’ supply of homes for sale. And
while inventory is trending up as more houses are coming to the market,
it’s still much lower than several of the previous summers, as the
orange bars indicate. If you’re thinking of selling, now is the time. Work with your agent to list your house before it has more competition on the market. Unlike the typical summer trend, time on the market is moving at the
fastest speed we’ve seen since NAR started collecting this survey-based
information in 2011. The most recent Realtors Confidence Index
shows that the average home is on the market for just 17 days, as shown
in green in the graph below. This means houses are selling at a much
faster pace than a typical summer, which the orange bars represent. If you’re thinking of selling,
data shows your house will likely sell quickly. If you’re worried about
where you’ll go once your house sells, consider a newly built home as a
good way to move up. The last big factor making this an unusually strong market this summer is home price appreciation. According to the State House Price Index from the Federal Housing Finance Agency
(FHFA), we’re currently experiencing double-digit house price
appreciation and have an average of 12.6% appreciation across the
country. The graph below uses data from NAR
to show a more granular view of how prices have changed month-to-month
over the past few years. The green bars show the current price
appreciation we’re experiencing today. Our current levels are well above
what we’ve seen in recent summers, shown by the orange bars. If you’re thinking of selling, seize this opportunity to use your additional equity from this price appreciation to power your next move. This isn’t a typical summer. Whether you’re buying or selling, let’s
connect to talk about how you can capitalize on today’s market
conditions to sell your house or find your dream home.Why This Isn’t Your Typical Summer Housing Market
Inventory is increasing.
If you’re looking to buy, some relief is on the way in the form of more homes coming to the market. Just remember, we still have less inventory than the norm, so be patient in your search.
Time on the market is still shorter than normal.
If you’re looking to buy,
this means you need to be prepared to move fast. Brace for a quick pace
and rely on your agent to stay in the know on the available homes in
your area.
Price appreciation is still rising.
If you’re looking to buy, competition and bidding wars are driving prices up. Getting pre-approved can show the seller you’re serious and help you know what you can afford. Once you do, work with your agent to make a strong offer that stands out.
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