Is the real estate market still going strong?
Home sales in September surged once again, with growing levels now reported for four consecutive months in a row. With sparse inventory still a factor affecting the market, the demand from the summer months has clearly transitioned into the fall season. The market is persevering despite financial and economic volatility as a result of the pandemic and the upcoming election. According to a recent report by the National association of Realtors, properties averaged 21 days on the market with first time homebuyers making up 31% of the buyer pool. The Northeast region specifically saw an increase in home sales from one year ago as well as an increase in median sale price. Additionally, Lawrence Yun, NAR’s chief economist said “The uncertainty about when the pandemic will end coupled with the ability to work from home appears to have boosted sales in summer resort regions, including the Jersey shore areas”. The dwindling of inventory combined with increased demand from buyers has continued to drive home values higher in these sought-after areas.
The impact of this buying spree has caused the usual norms to shift in unexpected ways. In previous years, home sellers may have accepted offers at 10-15% under list price. However, this is no longer standard, as contributing factors like location, the current market trends, the comparable sales or days on market are determining if a home will sell close to or above list price. Homebuyers are paying a premium for peace of mind as they gravitate away from densely populated areas towards homes with more space and privacy. Economists are expecting continued price growth in the months ahead as demand holds steady with mortgage rates below 3%.
We know there are important decisions to be made when buying or selling a home. Trusting a realtor who understands the local market and overall market trends will help you determine the true value of what you’re buying or selling. Call the Noonan & Rosenthal Real Estate Group for a personal approach to real estate that puts your interests first.