Showings really shot up this week… it feels like spring market as we move into summer! Weekly new and pending listings continue a steady climb, but buyers are feeling the shortage of homes for sale with intense competition.
One of the properties I showed this week had multiple groups lined up and waiting for showings when we arrived. We learned they received 30 offers! As my client said, “Holy Moly!!!”
A survey by Lending Tree revealed the three primary reasons why buyers are eager to buy this year, in the midst of the coronavirus crisis.
- Low mortgage rates – long-term US mortgage rates fell to an all-time low of 3.13%, extending buyer purchasing power and making it more affordable than ever to buy a home
- Reduced spending – one of the upsides of sheltering at home has been minimizing expenses from commuting, social events, eating out… and more people are finding they may be able to continue to work from home at least part time so some of those savings will continue… resulting in more money for buying and maintaining a house
- Re-evaluating their space – spending so much time at home has given buyers a chance to really evaluate where they are living and create a list of what they want in their next home, from space inside and out to location
What about the economic recovery… is it already underway?
According to a recent survey by the Wall Street Journal, more than 9 out of 10 economists believe the recovery has already begun in this quarter or will begin in the third quarter.
82.8% of economists surveyed said the recovery will be some form of a ‘V’ shape. Less than 2% projected a dreaded ‘L’ shaped recovery such as we experienced in the Great Recession of 2008.
Above info taken from our blog at Keeping Current Matters
I hope the economists are right, I can feel energy in the air. But there are also more layoffs happening in our market right now, and more businesses may not make it through the coming months. I heard this week that a client lost his job, but he isn’t worried. Coronavirus isn’t done with us yet. Time will tell… I would be happy with a ‘Nike Swoosh’ recovery!
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
