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.
Source: Real Estate with Keeping Current Matters