Just as the temperatures will drop a bit in the fall season along the coast, the hot housing market is also expected to cool off by a few degrees. According to real estate experts, the shift will involve a few moving parts to bring the market closer to normal this time of year:
- More homes are anticipated to go up for sale
- The record-high home prices and bidding wars from the past year will slow down
- The market will stay uber competitive, still with many more buyers than homes
Although experts forecast that the market will run out of home buyers who can afford the high listing prices, at the same time, they also believe home prices won’t suddenly drop. The national median in mid-August was $385,000, with prices predicted to rise slightly by 5 percent by end of year. The only difference? Buyers may not need to pull out all the stops to win the bidding war on a home, such as removing inspection or appraisal contingencies. However, a normal market would have up to six months of homes for sale; in June, there were 2.6 months’ worth of home inventory.
More homes are anticipated to go up for sale
A normal fall season usually means a slower pace of home sales because families like to be settled into their new home before the start of the school year.
But, as with everything else, COVID-19 threw everything off, and home sales post-summer don’t show any sign of slowing down. More homeowners who are vaccinated feel more comfortable hosting open houses and putting their homes on the market.
And, although, homeowners who haven’t been able to make their mortgage payments during the pandemic are only a small portion of the home inventory (3.26% as of early August, according to the Mortgage Bankers Association), at least some of these 1.6 million homes will still hit the market to avoid foreclosure – they may even make a profit in this sellers’ market.
Home sale prices & bidding wars will decrease
Home sales may still be steady, but, overall, most buyers are not going to pay the high prices for the mediocre homes that were on the market a year ago. Not as many folks will be willing to waive inspections, wave appraisals or pay all cash over the listing price. And there will probably be a decrease in remote workers migrating from expensive cities to our low cost of living, like at the beginning of the pandemic.
The only thing that may continue to keep home prices strong are home purchases made by investors in bulk and in cash to turn them into rentals.
Supply will still not keep the pace with demand
Another pattern in the housing market that will continue is the demand for housing and builders falling short in keeping up with that demand and the growing population. This is why the fall will still cater to a sellers’ market because of a couple of factors:
- Rental prices are on the rise, so people are realizing that it’s cheaper to buy a home.
- Mortgage interest rates are still at an all-time low (an average of 2.87% in mid-August)
Are you ready to sell your home? Because of the forecasted competitive fall market, you’ll want Paige Bird as your real estate agent to sell your home or condo fast and at the price you deserve. Paige is one of the top selling agents in the area, and #1 in the state as a RE/MAX agent. Contact Paige Bird today so she can sit down with you to get started in the home selling process at 843.450.4773 or email firstname.lastname@example.org.