2020 Summer Heating Up Real Estate

With stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping 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. In 2020, summer is the new spring for real estate.

  • Google reports searches for “homes for sale” are up an average of 54% from 2020 lows in 50 metro areas.
  • Freddie Mac’s chief economist said, “Today’s purchase demand is only down 10% from a year ago.”
  • Zillow reports new listings nationally grew 5.9%, up for the third week in a row.
  • Applications for mortgages to purchase homes went up 6% for the week and only 1.5% below a year ago.

These are all positive trends.

Orange County market stats:
  • Last 12 months in Orange County-Seven Gable Real Estate leads the top 10 companies in the fewest “Days On Market” of any company.
  • Offices YTD (closings-not pended):  850+ sides, UP 3.3% over 2019
  • Month Over Month:  comparing April 1-25 to May -25-All of Orange County-New listings UP 34%, Pended sales UP 60.4%
  • Month Over Month-same period, over 1 million in OC-New listings UP 58.4%, Pended sales UP 94.6%
  • Month Over Month-same period, over 2 million in OC-New listings UP 71.7%, Pended sales UP 48.2%

What’s the Opportunity for Buyers?  Another reason buyers are coming back to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac indicates:   “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 states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.

What’s the Opportunity for Sellers? Finding a home to buy, however, is still a challenge, as this spring sellers removed many listings from the market. Though more people are now putting their houses up for sale this month as compared to last month, 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 house this summer, now may be your best opportunity. With so few homes on the market for buyers to purchase, this season may be the time for your house to stand out from the crowd. Stovall Team will help you list safely and effectively, keeping your family’s needs top of mind. Buyers are looking, and your house may be at the top of their list. If you’re thinking of selling, many buyers may be eager to find a home just like yours. Reach out to Stovall Team today to make sure you can get your house in on the action this summer. Call me today at 714.343.9294. 

This entry was posted in Buyers, Sellers. Bookmark the permalink. Both comments and trackbacks are currently closed.