Half way through 2020 and so much has happened… and I’m ONLY talking about the Real Estate market!
The Question I continue to get is”
“Are we Really in a Sellers Market?”
Well… inventory is low so that helps, but that’s not the only thing affecting this market!
Consumer confidence is back!
The consumer confidence seems to finally be back, we’re seeing a lot of buyers get back into the market upon realizing that the pandemic that we’re facing has nothing to do with the real estate market itself.
Low Interest Rates
Low interest rates are no doubt also fueling this confidence. Interest rates have fallen to the lowest point in over 10 years, we have seen buyers flood the market to capitalize on these once in a lifetime rates.
Low Inventory Levels
I feel the reason for this is homeowners feeling comfortable with what they currently have. They have scarcity around their job security but they have a fixed rate on their mortgage so they are not willing to make a change. If you’re in a financially more confident position, you are more inclined to go out there and buy your next home. The environment we are in now does not support that.
We’ve seen 11,049 new homes come on the market. This is what we would like to see and the sign of a healthy market. However, we saw 9440 homes go into escrow and another 1700 go off the market. This has actually put our inventory in the negative digits for the month of June.
These low inventory levels will cause prices to go up.
So what’s the solution to bringing our market back into a healthy space?
Well to begin with, we need homeowners to approach us so that we can help them get their properties sold. This is the perfect time to take advantage of the seller’s market that we’re in. We will stage your house and front you the money for any redeveloping that’s necessary so that you don’t have that burden on your head.
SELLERS ADVICE:
Timing is everything in real estate and now is your time. The market has extremely low inventory and nicely remodeled homes are hard to come by. If you can fix up your home you can definitely ask a premium for it. Ask us how we can remodel your home with no money out of your pocket and get absolute top dollar for your property!
As always if you ever have any questions, feel free to reach out!
Joseph Arendsen
True Local Realty Group | COMPASS