Here's What Home Buyers & Sellers Can Expect This Summer
As the weather finally begins to warm up in the Pacific Northwest, our efforts to tackle COVID-19 appear to be paying off. Summer is usually a very busy time for the real estate market, but this year looks to be different thanks to months of social and economic shutdown caused by the pandemic. One thing is still for certain, however: The Seattle area remains one of the strongest homebuying markets in the country, and despite it looking different than normal, the market is still hot. Though the number of new resale listings and remaining unsold listings locally have plummeted compared to last year, homes going under contract are already beginning a road to recovery. Thanks to the Coronavirus pandemic, there is now a large demand among both buyers and sellers across our region.
We are lucky to live in a world where technology exists, making it possible for real estate professionals to continue their business through virtual tours and meetings. Photos and virtual tours provide a sense of safe-distance for many buyers while still being able to connect with brokers as they would during an in-person tour. And without the time-consuming commutes to multiple homes, buyers have the interest and energy to look at more listings. That’s good news for buyers.
Despite these industry changes forced by the pandemic, the biggest challenge in residential real estate in our region is one that we’ve seen many times before: a shortage of homes for sale on the market. Strong buyer interest and mortgage rates approaching historic lows are spurring demand. Until we have more homes coming on the market, we’ll continue to be close to sold out in the more affordable and mid-price ranges, which makes it more difficult for the backlog of buyers to find their new home.
What does this mean for buyers and sellers?
A shortage of homes on the market indicates a sellers market, meaning it is a favorable time to list your home for sale. Low inventory causes buyers to bid higher in order to be the winning offer. Bidding wars and price escalations are also commonly seen during a sellers market, where buyers are competing against each other and will do whatever it takes to be the one to purchase an individual home.
If you are looking to buy a home this summer, prepare to fight to have your offer considered. And if you see something you like, don't wait to put an offer in. Chances are others will beat you to the punch.