It's not uncommon to see the real estate market go through ups and downs, but typically the summer months tend be slower than during the traditionally busy spring. But this summer won't be the same as others. As the economy improves, many people are going to buy property. And with life returning to normal, this could be an unusually strong summer for real estate.
Recently, the US has seen a significant decrease in the unemployment rate. This is expected to lead to increased confidence in the market, and renewed consumption. This could be an unusually strong summer for real estate; people are going to be feeling more financially stable as they might have more disposable income available.
We take a look at this year's summer and compare it to what is typically expected. What does this mean for you?
Inventory is increasing
House prices are up and many sellers are entering the market. The latest National Association of Realtors (NAR) Existing Home Sales Report states that inventory levels have been increasing since February this year. The report also states that there is a moderate correction in the housing market and that a lack of supply is creating demand.
There's an upward trend as shown by the green bars. Currently, there's roughly a 2.5 month supply for homes on sale,
While inventory is still trending up compared to previous summers, the bars on this graph show that there are still less homes on the market than in many of the previous summers.
The number of homes available to buy is rising in the market, but it's still below average. Be patient when looking for your next purchase.
If you’re considering selling your property, now is the time. The best way to do this is by contacting a realtor who can get your house onto the market before it has more competition.
Time on the market in Arizona is still shorter than normal.
Unlike the trends we might expect in the summer, this time on the market is going at a speed not seen since NAR started collecting survey-based information. The latest report from Realtors Confidence Index shows that the average home is on the market for about 17 days.
Sellers are selling their homes much faster this summer than they were last summer, as the orange bars demonstrate.
To be prepared to buy, you need to know that the home buying process will happen quickly. You should have a home buyer's agent represent you at all times in order to keep up with the available homes in your area.
Data shows that homes are selling quickly, and it’s only getting easier. If you’re thinking about selling your home, now is a great time to do so. For those looking for a new place to live once their house sells, consider a newly built home as an option.
Price appreciation is still rising.
The last big factor making this an unusually strong market this summer is that home prices are rapidly appreciating nationally.
The State House Price Index from the Federal Housing Finance Agency (FHFA) shows that across the country we are currently seeing an average of 12.6% appreciation. The graph below uses NAR data to provide a more detailed look at how prices have changed over the past few months. The green bars below represent the price appreciation we're experiencing at the time of this screenshot. You can see that the current prices are well above what we saw in recent summers, shown by the orange bars.
One of the things you can do to make your offer stand out is get pre-approved and let the seller know that you are serious by presenting a strong offer. This will give you a better understanding of what you can afford, which will help your agent tailor the offer.
If you're thinking of selling, seize this incredible price appreciation now to fund what's next for you.
Sellers are firmly in the driver's seat with this incredible stretch of price appreciation. The market is at its best in years, and it shows slight signs of slowing down.
This isn’t your typical summer. Whether you’re selling or buying, let’s connect to discuss the home market and how current market conditions can help you take advantage of the right opportunities to find your dream home or sell your current property.