The holidays are upon us, and usually real estate tends to slow down at this time of year as people focus on family and gathering together. This year, however, real estate will likely see a shift compared to previous years. Normally, we advise our clients that the holiday real estate market tends to be a buyers’ market as activity levels decrease. There are typically more homes on the market, giving buyers more selection and negotiating power. Due to COVID, the real estate market has seen several shifts, and the holiday market will likely be one of them.
A recent realtor.com article notes, “According to realtor.com’s Monthly Housing Market Trends Report, national home inventory was 39% lower in September 2020 than last year, and the number of newly listed homes dropped 13.8%. With more buyers than sellers in the market, homes aren’t lingering on the market for long. In September, homes nationwide spent an average of 54 days on the market, 12 fewer days than last year.” This is not necessarily bad news for buyers; it just causes a shift in buyer mentality. Interest rates remain low, which may allow buyers the ability to afford more home, or enter into the real estate market. Buyers who intend to buy should be prepared with mortgage pre-approval paperwork completed to be more efficient.
Sellers may have an advantage this season: there will likely be more demand. Typically at this time of year, homes may sit on the market longer. With the uptick in activity, it’s likely the sales cycle will move more quickly, generating higher prices and more offers.
With the rise of virtual tours, buyers are able to more efficiently “weed out” homes, narrowing their selection down, thus saving both buyers and sellers time. These are nuanced market changes and differences, and we are available to help or answer any questions you may have. For more details, take a look the realtor.com article: https://www.realtor.com/news/trends/ways-this-winter-will-be-an-unprecedented-time-for-buyers/.