More homebuyers are actively entering the market this summer than I've seen in a long time! It slowed for a quick minute but now, housing is truly driving the US economy. With so many buyers and so little inventory, there is a disconnect between supply and demand in all price ranges! This imbalance pushes home prices up creating more bidding wars and multiple offer scenarios.
Danielle Hale, Chief Economist at realtor.com explains: “People are surprised that prices are rising, not falling, because in the last recession home prices fell, the difference this time is the severe shortage of homes for sale…We are seeing bigger price increases with [a limited] number of homes…That is likely to lead to more competition and potentially multiple offers and bidding wars.”
HousingWire also indicates: “42% of homeowners who made a purchase during the January to May time period ended up in a bidding war, demonstrating the strong demand for homes amid low inventory.”
I believe we will continue to see the number of buyers increase as more and more people start returning to work. If you're looking to buy a home this summer, it's important to have the right Realtor with experience from the start to ensure your offer stands out from the crowd when it counts the most.
1. Hire a Trusted Local Expert
A trusted local real estate professional matters more than ever right now, as noted in a recent survey shared by the National Association of Realtors. In fact, according to respondents, 54% of buyers and 62% of sellers indicated that “Particularly during the pandemic, a real estate agent’s guidance is especially valued.”
The market right now is not normal and you need a true expert to navigate the landscape today! We're in one of the biggest health crisis our nation has seen and it's had a dramatic impact on the journey it takes for consumers to purchase a home.
2. Get Pre-Approved for a Mortgage
Having a pre-approval letter shows that you are serious about purchasing a home now. With more buyers than sellers, having an iron clad lender will help your offer rise up towards the top! Your Realtor will guide you towards lenders you can trust.
If you're ready to purchase a home this year, contact a "Local Real Estate Professional" to get the process started so you can make sure your offer is a strong one when the competition heats up.