In June there were 225 active listings, which is 28% fewer homes on the market than there were last June. COVID-19 is still suppressing inventory but demand is booming!
There were 28% fewer homes on the market here than there were last June, but twice as many homes went under contract this year.
Last year, we had 56 NEW listings in June and this year we had 77. This may be due to a delay in putting properties on the market in the spring, but there may also be sellers who are hearing that demand is way up and they are looking to get their homes sold quickly, for top dollar.
So, why is this happening and how do we compare to the rest of the country?
Well, there is a trend we’re seeing across the country where many buyers are setting their sites on properties that will be an ideal work from home spot with more outdoor space than where they currently reside. And the unbelievably low-interest rates are playing their part as well.
Rubeela Farooqi, Economist at High Frequency Economics believes “The housing market is likely benefiting from low mortgage rates, stronger demand for larger spaces as more and more people work from home and a desire to move away from crowded cities to avoid exposure to the coronavirus.”
Additionally, a recent quote from Realtor Magazine states “Nearly 30% of respondents living in a high-density urban area say that the pandemic is prompting them to want to move by the end of the year...This is more than double the rate of those living in rural parts of the country, where residents are much more likely to stay put rather than to relocate.”
And even more to the point of what we’re seeing here on the Island is a statement from Danielle Hale, the Chief Economist at Realtor.com: She said “Much like the suburbs are gaining favor with home shoppers, second home markets are seeing increased interest from luxury buyers. Suffolk County, N.Y., home to The Hamptons, Palm Springs in Riverside County, Calif., and Greenwich in Fairfield County, Conn.– all second home markets — ranked among the top five markets with the largest increase in listing view growth in May.” This certainly seems to be what we’re seeing on the Island and it really makes sense with so many people able to work from home now.
While real estate can help lead the way in a recovery, a cautionary note from The Wall Street Journal states: “U.S. job growth surged last month, underscoring the economy’s capacity for a quick rebound if businesses continue to reopen and consumers regain confidence. A recent coronavirus spike, however, could undermine trends captured in the latest jobs report.” This is something we all need to keep in mind over the next few months as we navigate through re-openings across the country as so many people go back to work.
So, if you’re a seller, you may be thinking someone will be willing to pay a high price for your property, right? Well, think again because while the demand is high, Overpricing is still not a good idea, as buyers are savvy. And while motivated, they are still paying attention to prices and most often are working with a Buyer’s Agent who will help them determine what a property is worth.
As a buyer, it really is best to work with an agent who can keep you informed when new homes are hitting the market, since the ones that are priced well, are going under contract within a few days.
If you have any questions about today’s market, reach out – I’m always happy to help.