This year is shaping up to be the best in a decade for home sales, but that doesn’t mean that buying a home is easy (uh-oh). Houses are flying off the market at the fastest rate since the housing bust in 2007, so we know that buyers must be working hard to find that perfect home and get it under contract. Harder than ever, perhaps.
Insights from our daily surveys of visitors to realtor.com® tell us that their biggest challenge is the low inventory of available homes, which is holding us back from seeing even more sales.
More people are reporting that just finding a home is a problem. We have about 13% more people looking to buy this summer, yet there are 5% fewer homes for sale. No matter how you do the math, it adds up to a shortage for buyers.
So it’s not surprising that this low level of inventory—along with the rapid-fire speed at which homes are selling and the high level of price appreciation—has led to the general perception that we’re in a seller’s market. Fair enough. But that doesn’t mean it’s all smooth sailing for sellers either.
In fact, sellers report that their biggest issue is time: In June, 40% of sellers said they had just started thinking of selling.
That percentage has been growing each month since this spring, so at least we can be encouraged by the fact that more owners are thinking of selling their homes as prices recover and mortgage rates remain temptingly low.
The No. 2 problem for potential sellers is finding a new home to purchase. At least the 18% who reported this as a selling obstacle aren’t willing to risk selling their current home without having a new one. Not being able to find a home is limiting both demand and supply.
Then the next biggest issue for sellers is making necessary improvements in order to sell. With remodeling and home improvement booming, potential sellers are running into challenges getting their own improvement projects completed—possibly because of competition for top-notch contractor services.
Sales typically peak in June or July, but this year might turn out to be a huge exception. With low mortgage rates, continued evidence of strong demand, and an increasing number of both buyers and sellers just starting to explore, we could have an extended peak.
But here’s the thing about peaks: They don’t last forever. The seasonal pull is as powerful as the tide—eventually we will run out of time as school starts, weather shifts, and a new president gets elected. These factors will likely have an effect in the near future on the Housing Market.
The opinions expressed here within are my own completely independent of BHGRE Coccia Realty and its owners and subsidiaries.
Thinking of buying or selling a home? Contact me for a Real Estate consultation. My information is below. I look forward to hearing from you.
Raymond Ciampaglia, Realtor®
Better Homes and Gardens Real Estate | Coccia Realty
424 Valley Brook Ave | Lyndhurst, NJ 07071
Office: (201)939-8900 | Fax: (201)939-8910
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