Normally Spring is a very busy season for the real estate market. This year things have been quite different. As the COVID-19 pandemic spread, many sellers were cautious about listing their homes for sale. They were afraid about people coming into their homes for showings. They are also concerned with getting low offers since there wasn't much activity.
The caution on the side of sellers impacted the number of homes for sale on the market. As a result it slowed the real estate season.
Mark Fleming, Chief Economist at First American said:
“As more homeowners are reluctant to list their homes for sale amid the pandemic, the supply of homes available to potential home buyers continues to dwindle.”
Currently majority of the states are going through phased reopening. Virtual showings are still in place. Face-masks and gloves are still being used. But we are starting to see sellers making a return to the market.
In their latest Weekly Housing Trends Report, realtor.com says:
“New listings: On the slow path to recovery. Nationwide the size of declines held mostly steady this week, dropping 23 percent over last year, a slight increase over last week but still an improvement over the 30 percent declines in the first half of May.”
We are definitely seeing progress and starting to see homes for sell increase. Despite this, the housing supply is still low as compare to demand.
Javier Vivas, Director of Economic Research for realtor.com says:
“Sellers have yet to come back in full force, limiting the availability of homes for sale. Total active listings are declining from a year ago at a faster rate than observed in previous weeks, and this trend could worsen as buyers regain confidence and come back to the market before sellers.”
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) agrees:
“In the coming months, buying activity will rise as states reopen and more consumers feel comfortable about homebuying in the midst of the social distancing measures.”
Homebuyers seem to be more confident than sellers. Maybe that is because they still have to move forward with their lives. Their families are expanding, they are still relocating for jobs, and they need more space. As a result, buyers are trying to catch up on lost time.
Summer will be the 2020 buying season. If you are thinking of selling this is the best opportunity for you to list. There is high demand right now. High demand equals higher selling price.
As Vivas says:
“More properties will have to enter the market in June to bring the number of options for buyers back to normal levels for this time of the year, nationwide and in all large markets.”
If you are thinking of selling - NOW IS THE TIME.
Contact South Florida Real Estate Experts at Prestige Waterfront Realty at 954-830-7000. We will help you selling your home at top dollar.