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Bidding wars in a pandemic? Housing is heating up fast
Source: CNBC
After the housing market nearly shut down in April, competition is back with a fury.
States are loosening social distancing restrictions and homebuyers are rushing to open houses again. The trouble is, they’re not finding much to buy.
The coronavirus pandemic caused a historic drop in the supply of homes for sale that was already pretty meager. New listings had dropped by half during the second weak of April, compared with a year ago, according to real estate brokerage Redfin. Weak supply and growing demand is now causing a surge in bidding wars, especially for homes priced below $1 million.
More than 41% of homes faced a bidding war in the four weeks ending May 10, according to Redfin. That’s up from just 9% in January, before the pandemic hit the U.S.
“Demand for homes has picked back up after hitting rock bottom in April, and that uptick paired with a lack of supply is a recipe for bidding wars,” said Redfin lead economist Taylor Marr. “Homebuyers are getting back out there, searching for more space as they realize using their home as an office and school may become the norm.”
Sellers, however, are not rushing back into the market. Some are concerned about the economy, while others just don’t want people coming through to tour their homes.
“There’s more buyer activity on our site, as defined by engagement with our agents around homes that they’re looking at, than there are new listings coming on our site, as defined by new listing inventory in the market,” Robert Reffkin, CEO of real estate brokerage Compass, said on CNBC’s “Squawk Alley.”
New listings were down 29% annually for the week ending May 9, according to realtor.com, and while that is an improvement over previous weeks, it is still slow progress.
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Happy Easter!
May you find the renewal of hope, health, love, and the spirit of God to help us all during this COVID-19 crisis!
Posted in Holidays
COVID-19
Community Real Estate wants you to know that we are still working with Buyers and Sellers. We are conducting business while keeping the social distance requirement of the COVID-19. We continue to provide the same kind of results our clients expect. If you have questions about showing a property, open houses, or how we are following the current guidelines, please don’t hesitate to contact us whether by phone, email, etc. We’ll gladly respond to your inquiries.
The best time to sell a house is quickly approaching
Source: Housing Wire
Although home buying season seemed to have arrived early this year,homes listed in May generally sell for more than other times during the year, according to Zillow. In fact, the Mortgage Bankers Association said that January 2020 was the strongest January for purchase mortgage applications in11 years.
Making sense of the story:
•Spring is the universal start to home buying season, but in May specifically, homes that hit the market early in the month sell for almost 1 percent more than expected, according to the Zillow report.
•Not only do they go for more, but homes sold in May also sell about six days faster than on average, Zillow said.
•Although homes on the market in May could sell for more, homes listed during the month of April actually sell quicker.
Posted in Home For Sale, Real Estate
