Showings ticked up this week to 16.4% ahead of last year at this time… likely in response to a jump in new listings to the highest level since June 2019. Coming soon listings also increased this week, bringing a promise of more new listings to come.
This is good news as the real estate market has been held back by a shortage of homes available for sale and buyers are ready to buy. The chart below from the Minneapolis Area Association of Realtors is a couple weeks behind my chart above, but it shows how far inventory is behind last year. Today’s buyers are ready to buy now, and they eat up new listings almost as soon as they hit the market.
I went out with new first time homebuyers for the first time last Saturday-Sunday-Monday. The properties they viewed were all calling for highest and best offers… and we learned that offers $20k+ over list price were not uncommon. My buyers secured their winning bid on Monday… after looking for only 3 days! That is indicative of the attitude of today’s buyers. They are tired of waiting and serious about purchasing a home… now!
from our blog at Keeping Current Matters
Today’s homebuyers are not just talking about their plans, they’re actively engaged in the buying process – and they’re serious about it. A recent report by the National Association of Home Builders (NAHB) indicates:
“…. Of American adults considering a future home purchase in the second quarter of 2020, about half (49%) are not simply planning it, they are actively engaged in the process to find a home. That is a significantly higher share than the comparable figure a year ago (41%), which suggests that the COVID-19 crisis and its accompanying record-low mortgage rates have converted some prospective buyers into active buyers.”
It’s no surprise that buyers are out in full force today. Many Americans now need more space to work from home, and the current low mortgage rates are providing an extra boost of motivation to enter the housing market.
If you’re considering selling your house, know that today’s buyers are serious about making a move. Your opportunity to sell your house in a market with high demand is growing, especially as more millennials enter the housing market too. The same report also notes:
“Of Millennials planning a home purchase in the next year, 57% are already actively searching for a home.”
Odeta Kushi, Deputy Chief Economist at First American, explains:
“When breaking down house-buying power by educational attainment for millennials in 2019, we find that the higher the education, the higher the household income, and the higher the house-buying power. In 2019, median house-buying power for millennials increased 16 percent relative to 2018.”
As demand for homes to buy grows and more millennials enter the market with growing buying power, the opportunity to sell your house grows too.
Bottom Line
Today’s buyers are serious ones and more millennials are helping to fuel that charge. So, if you’re considering selling your home, contact us to determine your next steps in the process while buyers are actively looking.
