We laid out some hot gossip on the real estate market this upcoming Fall in our How Back-To-School Season Effects The Real Estate Market article, but there’s always more to look into. The real estate market is a bit of a shape-shifter. This year, and this Fall, it’s taking the shape of a seller’s market.
The National Association of Realtor’s collected data from Pending Home Sales Report and Existing Home Sale Report to reveal exactly what this season will bring.
1. Demand is high
Demand for housing is strong all across the country. The myth that millennials aren’t buying has been proven false. Renters are getting tired of paying someone else’s mortgage. NAR’s Confidence Index Survey showed that eighteen percent of sellers offered incentives in their deals last year. Providing closing costs (8 percent), warranty (7 percent), and undertaking remodeling (2 percent) are some examples of this. Buyers are certainly drawn in by this!
2. Inventory has decreased
Although the average amount of years that homeowners stay in their current home is roughly six years, we’ve seen that number rise close to 9 due to some negative equity situations. This has caused for a lot of people to build up their desire to move. Lawrence Yun, NAR’s Chief Economist, says “listings continue to go under contract in under a month, which highlights the feedback from Realtors® that buyers are swiftly snatching up moderately-priced properties.”
3. The process is getting quicker
Buyer’s feel as though they need to come to the table as prepared as possible. Buyers are coming pre-approved for mortgage financing. Loans are closing in an average of just 44 days! With many willing and able buyer’s out there, multiple prospects put in offers on homes— meaning they are competing with each other. This is all music to a seller’s ears!
4. It’s the perfect time to upgrade
Luxury homes have an abundance of inventory, meaning it is a buyers market. According to CoreLogic, prices are projected to appreciate by 5.1% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
To view our current listings, visit us at McKillion.com.