This is a strange time in all our lives. Between the ever-changing stats on the coronavirus, the economy wobbling back and forth, and layoffs, many of us are thinking is this the right time to sell our homes.
Hesitancy is normal, however, after all the questioning, it is ironic that the real estate market is remaining resilient even though we are struggling with the pandemic.
Three separate reports recently revealed how the housing market is still showing growth. Here’s a look at each one:
1. Ivy Zelman’s Real Estate Broker Survey
The survey explains that purchaser demand remains strong: sequential gain in our survey history
“This month’s overall homebuyer demand rating…was easily the strongest … Strength continues to be led by the entry-level … While high-end demand is less robust in an absolute sense, there has also been relative improvement, with contacts attributing incremental improvement to the stock market’s rebound, record low mortgage rates and luxury customers trading out of high-priced cities.”
2. The National Association of Home Builders Housing Market Index
The index reveals that builder confidence has returned to levels last seen prior to the pandemic:
“In a strong signal that the housing market is ready to lead a post-COVID economic recovery, builder confidence in the market for newly-built single-family homes jumped 14 points to 72 in July, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI now stands at the solid pre-pandemic reading in March before the outbreak affected much of the nation.”
This index leverages a weighted average of four key components of the housing industry, tracking each of the following:
- Housing Demand – Growth in online search activity
- Home Price – Growth in asking prices
- Housing Supply – Growth of new listings
- Pace of Sales – Difference in time-on-market
It then compares the current status “to the last week of January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market’s index value, the higher its recovery and vice versa.”
The latest results came in at 101, with realtor.com explaining:
“The U.S. Housing Market has recovered from the immediate disruption caused by the COVID pandemic and returned to January 2020 growth levels.”
Real estate brokers, home builders, and industry data all agree that the housing market has surged back to pre-COVID levels, showing growth, strength, and incredible resilience.
So, if you're a home seller who assumed they should write off this summer's home-selling season as a lost cause, it's time for a reality check! Info by Erica Sweeney: Writer whose work has appeared in the new York Times, Parade, Huff Post and other publications.
How does this all apply to Lake Oconee? There is a demand for homes and inventory is down. Today it is a seller’s market and the perfect time for seller’s to get top dollar on their home.
THOUGHT FOR TODAY: The meaning of life is to find your gift. The Purpose of life is to give it away. (William Shakespeare)