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. Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually.
According to Joek Kan, Economist at The Mortgage Bankers Association (MBA) “Applications for home purchases continue to recover from April’s sizable 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.”
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. 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. If your client is thinking of selling a property this summer, now may be the best opportunity. With so few homes on the market for buyers to purchase, this season may be the time to stand out from the crowd. Trusted real estate professionals will help list safely and effectively, keeping client’s safety and needs top of mind. Buyers are looking, and your client’s house may be at the top of their list.
A turnaround is on the horizon this Summer with opportunities for both buyers and sellers. Evaluate how you can re-engage in the process and support your clients as the economy begins a much-anticipated rebound.