Home Sales are Going Strong
The latest article by Dr. Lawrence Yun, the Chief Economist for the National Association of REALTORS, is great news overall for home sellers. Dr. Yun says that despite the coronavirus pandemic, we are “on the upswing” in regards to the real estate sector’s recovery.
The Home Seller Advantage
Home prices have been increasing your after year at a steady rate. Each year, a home gains an average of more than 5% in value – which has been holding true for a number of years. Dr. Yun reminds us all that the United States housing market was very strong before the global pandemic, and this fact is one of the reasons the housing market is still proving to be resilient today. Numbers show that although home sales dipped during the early days of COVID-19, people turned to other activities such as fixing their homes, remodeling, and to anything they could in preparation for better days when they can list their homes for sale.
The Home Seller Disadvantage
There is a backlog of homes priced $500,000 and above. If a Seller is trying to sell one of these properties, they will be facing much more competition in the market.
The Home Buyer Advantage
Statistics from banks in the United States are also noteworthy because people saved more money than they spent in the early half of 2020. This means that the savings kept are available for home purchases today.
The Home Buyer Disadvantage
Dr. Yun states that the existing lack entry-level homes and an abundance of over $500,000 homes complicates the housing choices for homebuyers. Buyers are desperately wanting to take advantage of the great interest rates banks are offering for home loans. Home buyers are often facing a multiple-offer bidding war for homes under $500k, and more choices for homes over $500k – all due to years of building too many higher-end homes without focus on entry-level homes.