The roof isn’t on fire but the housing market sure is. It’s a profitable time for sellers. Listings are on par with past years and standing inventory is slightly up. Homebuyers are still out in full force and they’re willing to pay above listing price for a home.
According to a Homes.com survey of 1,600 consumers, 82% of homeowners selling in the last six months accepted offers at the listing price or above, nearly half sold in less than a month, and one-fourth had five showings or fewer before finding a buyer. The sellers who were surveyed said they intended to buy another home. 86% of those were able to buy a new home. The remainder are renting while looking to buy a new home.
Here are some other results to examine:
- 33% sold at listing price and 49% sold above listing price
- 27% accepted offers at $10,000 and even $20,000 higher than their requested sale price.
- 22% said the process took two weeks or less.
- 25% were on the market for a short time (2-4 weeks)
According to Redfin, home prices in rural towns rose 28% year over year in June to $468,000.
The inventory of homes, not to be confused with the number of listings) has been on a decline and has reached its lowest level since the Great Recession. From the 1980s through the 2000s, the annual number of homes for sale averaged 1.9 million. In 2020, it was below 1 million, according to an index from CoreLogic.com.
A large influx of buyers purchasing season homes have contributed to the inventory shortage. For people who worked remotely and didn’t want to quarantine in the city, purchasing a seasonal home was ideal due to space and as a way to get away safely.
Redfin Chief Economist Daryl Fairweather said these homes are likely to remain an attractive option for homebuyers.
“With workplaces making their remote work policies permanent and employees feeling more confident making long-term decisions, many Americans are moving full time to scenic vacation towns rather than purchasing second homes,” she said.
To help alleviate the inventory shortage, CoreLogic deputy chief economist Selma Hepp believes inventory should be built where there is job growth.
“Moving forward, to find respite from the inventory shortage and the pressure it has created on home prices, we need to build more homes in areas where employment is growing and where people are moving,” she said.