Before the election, I wrote a piece about what to expect in the real estate market in the lead up to Election Day. Overall, these predictions held true over the last month or two. We had a busy fall, albeit a slow second half of October and an extremely slow first week of November. However, once the election was called on Saturday, we saw a significant resurgence of people in the market. With our own clients alone, we noticed a difference. Three of our properties that had been on the market for over a month went under contract almost immediately, one with THREE offers!
We’ve also seen many of our buyers and off-market sellers move up their timeline to transact in the last few days. Regardless of where these clients fall on the political spectrum, the common sentiment is they were either distracted by the election or assumed other buyers and sellers would be. Thus, they decided to wait to make a move.
So, what does this resurgence mean for the rest of the year? We think the month of November will continue to be busy, as pent up demand over the weeks before and during the election has brought a flurry of activity.
As areas of the country return to partial shutdowns as COVID-19 cases sharply rise, we’ll be watching the effects on our market. Will these shutdowns add another “cabin fever” spike in activity? Will the colder temperatures bring a slowdown? It’s hard to know, but below are some facts that keep us feeling optimistic about the market over the next few months.
- Mortgage rates continue to reach all-time lows. Mortgage applications up 24% annually. With a commitment from the Federal Reserve that rates will remain at the same rates until 2023, buyers across the country are motivated! (Source: Washington Post)
- Homebuilder sentiment is at a record high of 88 — the highest recorded in the survey’s 35-year history, indicating that the strength of the single-family housing market exemplifies economic health. (Source: CNBC). This National Association of Homebuilders’ survey demonstrates homebuilders’ confidence in the market with strong, continued interest in new construction as overall inventory is still slim. A score above 50 is considered positive!
- The importance of home during a pandemic will continue to matter. The United States is still experiencing the impacts of COVID-19, which comes with a renewed set of requirements of our homes in order to meet the adaptations of our new daily lifestyle, for example, the need for a home office, “Peloton room,” or outdoor space to enjoy.
- Real estate experts are predicting a strong 2021. Forecasted by the Mortgage Bankers Association (MBA), mortgage purchase volume is expected to set new records in 2021, with purchase origination volume experiencing an 8.5 percent year-over-year increase to $1.54 trillion. (Source: Inman News)
All in all, the market shows no signs of slowing down anytime soon! Contract activity, new listings, and buyers entering the market are all trending upwards. If you have questions about whether or not the best time to buy or sell is now or in the spring, please reach out. We are happy to customize a strategy specific for your situation as there are plenty of ways to help you get to your real estate goals. As always, we are here to help!
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