With all that’s been going on in our country, I thought, what better time than a little market update to keep you in the loop with our real estate market. This is the beginning of a new season for housing, the Holiday Market! With shorter days and all the distractions of the holidays, housing will downshift with a drop in both the supply of homes available to purchase, and demand. To the buyers and sellers that remain in the mix, the overall market will still feel hot as ever, but there simply will be fewer active participants.
Diminishing Supply
The end of 2020 is quickly approaching, and with that, less homeowners will choose to put their home on the market. Intuitively, many will simply “wait until spring”. There will still be some homeowners eager to put their home on the market due to the public knowledge that housing is by far the strongest sector of the US economy, yet most will opt to wait until at least March of 2021. At the same time, homeowners who have attempted to sell for quite some time without success may decide to throw in the towel and pull their homes off of the market in order to enjoy the holidays.
As a result of fewer homeowners opting to sell and unsuccessful sellers pulling their homes off the market, the active listing inventory will drop. In the past five years, inventory has decreased an average of 27% from now through the end of the year. It is going to be difficult for the inventory to drop an additional 27%, as it is already at a very low level.
Dropping Demand
On the flip side, demand is going to drop as well. After writing offer after offer, only to be turned down repeatedly, buyers will divert their attention away from jumping on every home that hits the market, to pumpkin spice lattes, eggnog, and of course FOOD. They will merely place their home buying aspirations on hold while they plug into the holiday season.
Sidelined buyers and fewer new potential purchasers will result in a significant drop in demand. In the past five years, demand has fallen 31% on average from now through the end of the year. But remember, demand hit a new high this year, so even if demand were to fall 31%, the holiday market will still be quite busy with plenty of buyer activity compared to recent years.
A Quick Recap
If you’re considering selling, there will be less competition over the holidays and still many active buyers who are eager to buy which will result in a higher sales price. If you’re in the market to purchase a home, the sooner the better! Interest rates are phenomenal right now & postponing buying to next year may result in a higher interest rate AND a higher purchase price.
I would love to hear from you guys what you want to know more about when it comes to real estate. Please DM me your questions so I can make you the content you want and need! Also, Now is the time where I start business planning for 2021 and I’ve got some big goals I’m setting for myself! If you, or maybe someone you know is thinking about buying or selling real estate next year I would LOVE to chat with you and see what I can do to help you meet those goals. Go ahead and send me a message or give me a call!
