Homebuyer Demand Is Far Above Last Year’s Pace

Homebuying has been on the rise over the past few months, with record-breaking sales powering through the market in June and July. Buyers are actively purchasing homes, and the momentum is continuing into the fall. It is, however, becoming harder for buyers to find homes to purchase. If you’ve been thinking about selling your house, the coming weeks might just be the timing you’ve been waiting for.

According to the Pending Home Sales Report from the National Association of Realtors (NAR):

Pending home sales in July achieved another month of positive contract activity, marking three consecutive months of growth.

The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001.”

This means that for the past several months, buyers have signed an increasing number of contracts to purchase homes – well above where the market was at this time last year. Lawrence Yun, Chief Economist at NAR notes:

“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market…Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”

Homebuyer Demand Is Far Above Last Year’s Pace | MyKCM

Below is a graph that shows the impressive recovery of homes sales compared to previous years. The deep blue v marks the slowdown from this spring that turned into an exponential jump in sales that followed through the summer, skyrocketing above years past:

What Does This Mean for Sellers?

If you were thinking about putting your house on the market in the spring, but decided to wait due to the health crisis, it may be time to make your move. Buyers are in the market right now. With so few homes available to purchase, homeowners today are experiencing more bidding wars, creating an optimal time to sell.

Is This Trend Going to Continue?

As CNBC notes, there are no signs of slowing buyer demand this fall:

The usual summer slowdown in the housing market is not happening this year. Buyers continue to show strong demand, spurred by the new stay-at-home world of the coronavirus and by record low mortgage rates.”

Danielle Hale, Chief Economist at realtor.com, concurred:

“In a typical year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we move into the fall. Due to a delayed spring season and low mortgage rates, we could see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales will depend on whether sellers participate or decide to stay on the sidelines.”

As Hale mentioned, homeowners who are willing to sell their houses right now will play a big role in whether the trend continues. The market needs more homes to satisfy ongoing buyer demand. Maybe it’s time to leverage your equity and move up while eager home shoppers are ready to purchase a house just like yours.

Bottom Line

If your current home doesn’t meet your family’s changing needs, let’s connect to help you sell your house and make the move you’ve been waiting for all year.

Things To Consider When Selling Your Home In 2020

As we move through what is by far one of the most challenging years America has ever seen, the housing market is exceeding all expectations. It’s recovering in what is being called truly remarkable by industry experts. The benefits of selling a home this season are plentiful, and worth exploring if you’re thinking of making a move this fall. Here’s why:

  1. Buyer's are actively in the market
  2. Inventory of houses for sale is low
  3. Home prices are rising
  4. Mortgage rates are low
  5. Homeowner equity is high

While our nation has seen ample hardships in 2020, the housing market is a sector that’s making one of the most significant recoveries from this crisis. With strength in the market clearly in favor of sellers, if you’re ready to take advantage of this unique moment, it’s an excellent time to sell your house and move into the home of your dreams.

SellerGuideCoverFull (1)

Things To Consider When Selling Your House In 2020

SellerGuideCoverFull (1)

As we move through what is by far one of the most challenging years America has ever seen, the housing market is exceeding all expectations. It’s recovering in what is being called truly remarkable by industry experts. The benefits of selling a home this season are plentiful, and worth exploring if you’re thinking of making a move this fall. Here’s why:

  1. Buyer's are actively in the market
  2. Inventory of houses for sale is low
  3. Home prices are rising
  4. Mortgage rates are low
  5. Homeowner equity is high

While our nation has seen ample hardships in 2020, the housing market is a sector that’s making one of the most significant recoveries from this crisis. With strength in the market clearly in favor of sellers, if you’re ready to take advantage of this unique moment, it’s an excellent time to sell your house and move into the home of your dreams.

Build More Wealth With Your Home

Track Your Home Worth: Keep an eye on your home value, loans, equity, market trends & more.

Save More Money: See the power of extra principal payments or refinancing at the right time.

Build Your Wealth Faster: Know exactly when to buy, sell, rent, or remodel to maximize your investment.

Start Growing Your Net Worth Today!

homebot (1)

Build More Wealth With Your Home

homebot (1)

Track Your Home Worth: Keep an eye on your home value, loans, equity, market trends & more.

Save More Money: See the power of extra principal payments or refinancing at the right time.

Build Your Wealth Faster: Know exactly when to buy, sell, rent, or remodel to maximize your investment.

Start Growing Your Net Worth Today!

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