At the beginning of the year, most analysts were predicting a hot spring sales season for the housing market. But in the wake of the coronavirus outbreak, a lot of prospective home buyers put their plans on hold. It appears they’re ready to buy; now as summer shoppers.
Summer Shoppers Back in Full Swing
According to a new analysis, contract signings were up 15% month-over-month during the last week of June. In addition, the typical home for sale was sold in just 19 days. That’s good news for the housing market, as it means spring’s crashing sales numbers will likely see a quick summer recovery. But it also means that potential home buyers need to be prepared for a competitive market. Since the inventory of homes for sale hasn’t rebounded as quickly as buyer demand has, there are more home buyers than available homes.”Buyers have come roaring back to the housing market…and all signs indicate the hot spring selling season we anticipated has shifted to the summer,” said Zillow economist Jeff Tucker. “But those shoppers are competing over a shockingly small pool of homes, causing prices to resume their upward climb after a little softness this spring.” In many markets, that’s led to increasing prices, bidding wars, and fewer choices for interested buyers. For example, home prices in cities like San Jose and Seattle were actually falling last year at this time. Now, because of the market’s imbalance, prices have turned around and are up more than 5 percent in both metros. Follow the link for more detailed information (source).
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