Friends and Clients --
Nobody expected a real estate rebound quite like this.
As a result, we’re seeing a unique opportunity for anybody thinking of selling a home. I’ll explain what I mean in a second. First, let me give you the details:
1. A surge in demand
According to the National Association of Realtors, pending home sales spiked a stunning 44.3% in May compared with April.
That is the largest one-month jump in the history of the survey, which dates back to 2001. It blasted expectations of a 15% gain.
Of course, the reason behind this is the pandemic. Much of the housing market shut down entirely in April. Since this is normally the hottest part of the year for real estate, there is a tremendous amount of pent-up demand. But that's not all.
2. Ultra-low mortgage rates
Mortgage rates continue to hit new record lows.
The 30-year fixed mortgage rate currently stands at 3.13%, more than a half percent lower than a year ago.
Not surprisingly, this is creating even more demand, as buyers seek to take advantage of these historically low and favorable rates. There's only one thing standing in their way:
3. A lack of inventory
The inventory of homes for sale was low even before the pandemic hit.
It's even lower now since many sellers pulled their homes off the market and have been slow to list them once again.
The supply of existing homes for sale at the end of May was nearly 19% lower than the same time last year.
What does all this mean for you?
In short, it means we are back in a strong seller's market.
Pent-up demand and low mortgage rates mean there are many buyers on the market. On the other hand, low inventory means much of that demand is not being met.
As a result, prices are rising, bidding wars are becoming common, and homes are selling quickly.
If you were to sell in the current market, you'd have a great shot at selling for top dollar and in record time.
Like I said, right now might be a unique moment. It's not clear how long this situation will last. As more sellers start listing their homes, we're likely to have some balancing out between supply and demand.
If you are considering selling your home, you can start by simply finding out what you could get for it in the current hot market. An easy way to do this is with the following home value calculator, which takes into account recent Austin sales:
If you are curious about selling your home or simply have questions about the current Austin market, give me a call at 512-829-8000. I'm talking to buyers and sellers all day long, and I have a great feel for changing market conditions, which I am happy to share with you.
Have a great day,
Looking to buy a home? Looking to sell a home?