The Spring Real Estate Market Starts Now!

With stay-at-home orders being lifted in New England and throughout the country, data indicates that homebuyers are charging back into the market. After many families put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer.

Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:

“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”

Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15^th to 92 points last week. More potential homebuyers are looking for homes virtually.

What’s the Opportunity for Buyers?

Another reason buyers are coming back to the market, even with forced unemployment, is historically low mortgage rates. According to Sam Khater, Chief Economist at Freddie Mac :

“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”

With mortgage rates at such low levels and the outlines of the next normal becoming clearer, there’s more incentive than ever to buy a home this summer.

What’s the Opportunity for Sellers?

Finding a home to buy remains a challenge, as many sellers removed listings from the market in April. Even though more people are starting to market their homes fthis month as compared to last, current inventory is still well below last year’s level.

According to last week’s Weekly Economic and Housing Market Update from realtor.com:

“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”

If you’re thinking of selling your home now may be your best opportunity. With fewer properties on the market than in the past, this season may be the time for your house to stand out from the crowd. If you assume a 45 day period to complete a transaction, buyers who purchase a home in the next few weeks will be on Cape to still enjoy the summer.

Let’s connect either virtually or at a safe distance to make sure that your house in on the action this summer. We’re available at 508-568-8191 or [email protected].

For those you who may be on the fence about selling, here’s another reason why the Cape housing market could be hot this summer.

According to a story this past Saturday on the Today Show, city residents, who can work remotely, are considering moving to more quiet surroundings after being stuck in high rises and clogged neighborhoods during the pandemic.

Here’s a link to the story: More People Considering Moving Out Of Expensive Cities If They Can Work Remotely

Many of the gloom and doomers, who were predicting back in early April the worst for homeowners, failed to take into account the large number of Americans, who actually owned their homes free and clear or had substantial equity in their property.

With demand high and inventory low, sellers stand to realize top dollar for their homes. Couple this with significant equity, they are in a strong position to purchase the home they’ve always wanted or the vacation spot that they’ve been dreaming about.

Let us know how we can help…

Stay healthy; stay optimistic.

Mari and Hank