Friends and Clients —
The real estate market is in a unique position right now. Let me give you a quick update:
1. Social distancing restrictions are loosening
Around the west coast of Florida, we are starting to see more and more open houses. Home sales are also picking up once again.
Of course, there is a new level of care and consideration for safety and health. At open houses, expect to see lots of hand sanitizer and gloves. We are even seeing lots of virtual showings these days, which often suits both buyers and sellers.
2. Buyers are out and very eager
I have seen a definite jump in both buyer interest and viewings over the past several weeks. This has to do with pent-up demand, as well as with record-low mortgage rates.
As a result, bidding wars, which had almost disappeared before the pandemic, are back. 41% of homes sold in April experienced a bidding war. Compare that to just 9% back in January.
3. There's an extreme lack of inventory
The number of homes for sale dropped by almost 20% annually this April. This is the lowest April housing inventory of all time.
Inventory was already low before the corona virus hit. Now, many sellers are either hesitant because of the pandemic, or they simply do not realize how strong demand currently is.
That's the unique position I mentioned at the start. There is a big disconnect between very high levels of demand and very low inventory. That is pushing home prices to record levels.
However, the moment might not last. Online listing sites already reported an uptick in property listings at the end of April. The number of homes on the market is likely to become much higher in the coming months.
That means if you're thinking of selling, right now might be a golden moment to do so.
With the current high levels of demand, you could sell very quickly and at record price levels before a new wave of sellers comes onto the market.