More potential buyers
Because of the low inventories in spring and summer markets, fall sellers may find a significant number of potential buyers pre-approved and eager to make an offer. In many markets, this is leading to multiple offer situations and the potential for above-asking price offers as new sellers benefit from unusually high comparable property values.
Another benefit for sellers is the willingness of hopeful buyers to forego long lists of repair requests and extensive contingencies in order to make their offers more attractive. This may provide a good opportunity for as-is sellers and absentee owners to facilitate an easier, more streamlined sale process.
Rising alternative markets
The increasing availability of work from home options may allow many prospective buyers to look outside of their in-town or exurban markets. This could be good news for the outer-ring suburbs and rural communities that rarely get a boost from a hot real estate market.
In addition, many young first-time buyers may have far more choice of where to live than ever before. If they don’t have to move to the major urban centers in order to snag the best jobs, these Gen-Z and younger Millennial buyers may be able to make their homes in more affordable areas off the beaten path.
Luxury market boost
Increasingly home buyers are looking for properties with more space for multiple home offices and virtual learning environments, larger lots for outdoor play and recreation, neighborhood greenspaces for active lifestyles, and upgraded recreational amenities like pools, tennis courts, and basketball courts. Where can you find all of that? In a luxury property.
Following a significant 2019 slump and an initial decline when COVID-19 first hit, luxury homes appear to be enjoying a strong recovery, holding their value and selling quickly in most of the largest markets throughout the country. Anecdotally, many long declining luxury markets are undergoing significant recoveries and others are growing at a healthy clip. New home construction starts, seen by many as a solution to tight inventory, have exploded in recent months as well.
If you’ve put off your purchase or sale due to the uncertainty around COVID-19, the exciting fall market may just allow you to meet your goals before the holiday season starts. As always, your journey begins by talking with your real estate agent or broker to find out the latest information about real estate values and trends in your area.