This year’s record-low mortgage rates sparked high demand among homebuyers. Current homeowners, however, haven’t put their houses on the market so quickly. This makes finding a home to buy today challenging for many potential buyers. With an obstacle like this, those searching for their dream homes may be pressing pause on their searches as we approach the end of the year, but that could be a big mistake for many hopeful house hunters. Here’s why.
According to the most recent Housing Trends Report from the National Association of Home Builders (NAHB):
“The length of time spent searching for a home continues to grow.”
The report indicates that 62% of buyers now spend 3 months or more looking for a home, an increase from 58% one year ago. A primary cause for the delay is the heavy competition today’s buyers face when making an offer on a home. Based on recent data from the National Association of Realtors (NAR), the average house in today’s market receives 3.4 offers before it’s sold. This means for every buyer who purchases a home, there are on average two or three buyers who have to begin their search all over again.
Compared to this time last year, the NAHB report shows that buyers are having more success finding homes in their price range. However, it also notes the percentage of buyers saying they’re getting outbid when they make an offer has jumped from 15% to 27%. Buyers are indicating that bidding wars are a major obstacle to finding their dream home (See graph below):If this is a challenge you’re up against in your home search, you’re not alone. Feeling stuck in the process can be frustrating, but if there’s ever been a year to power through, this is the one. NAHB noted:
“Difficulties finding a home to buy will likely lead 20% of active buyers to give up until next year or later. That share is up from 15% a year earlier.”
Experts anticipate home prices will continue to rise into 2021, and the incredibly low interest rates we’ve seen this year are also forecasted to increase as the economy strengthens. Hopeful homebuyers who decide to hold off on their search until there’s less competition run the risk of finding a more expensive housing market when they start looking again. If affordability is a key motivator behind your decision to buy a home, this winter is still the best time to make it happen.
Bidding wars may be one of the greatest challenges buyers face in today’s housing market, but they shouldn’t be a deal-breaker. Having the right expert on your side throughout the buying process will give you the advantage you need when it comes to finding the right home and making a competitive offer. If you’re ready to buy this winter, let’s connect to discuss how to position yourself for success.
The number of houses for sale today is significantly lower than the high buyer activity in the current housing market. According to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR):
"There is no shortage of hopeful, potential buyers, but inventory is historically low."
When the demand for homes is higher than what’s available for sale, it’s a great time for homeowners to sell their house. Here are three ways low inventory can help you win if you’re ready to make a move this fall.
With so many more buyers in the market than homes available for sale, homebuyers are frequently entering into bidding wars for the houses they want to purchase. This buyer competition drives home prices up. As a seller, this can definitely work to your advantage, potentially netting you more for your house when you close the deal.
Rising prices mean homes are also gaining value, which drives an increase in the equity you have in your home. In the latest Homeowner Equity Insights Report, CoreLogic explains:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity.”
This year-over-year growth in equity gives you the ability to put that money toward a down payment on your next home or to keep it as extra savings.
When we’re in a sellers’ market like we are today, you’re in the driver’s seat if you sell your house. You have the power to sell on your terms, and buyers are more likely to work with you if it means they can finally move into their dream home.
Yes, especially if you want to sell your house at the perfect time. Today’s market gives sellers immense negotiating power. However, it won’t last forever, especially as more sellers return to the housing market next year. If you’re considering selling your house, the best time to do so is now.
If you’re interested in taking advantage of the current sellers’ market, let’s connect today to determine your best move in our local market.
The 2020 housing market has surpassed all expectations and continues to drive the nation’s economic recovery. The question is, will this positive trend continue throughout the rest of the year, especially given the uncertainty around the current health crisis, the upcoming election, and more?
Here’s a look at what several industry-leading experts have to say.
Lawrence Yun, Chief Economist, National Association of Realtors
“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market…Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery."
Frank Martell, President and CEO, CoreLogic
"Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures…Although the exact contours of the economic recovery remain uncertain, we expect current equity gains, fueled by strong demand for available homes, will continue to support homeowners in the near term."
“Zillow's predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.The pandemic also pushed the buying season further back in the year, adding to recent sales. Future sources of uncertainty including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors, were incorporated into this outlook.”
“Zillow's predictions for seasonally adjusted home prices and pending sales are more optimistic than previous forecasts because sales and prices have stayed strong through the summer months amid increasingly short inventory and high demand.
The pandemic also pushed the buying season further back in the year, adding to recent sales. Future sources of uncertainty including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors, were incorporated into this outlook.”
Many economists are in unison, indicating the housing market will continue to fuel the economy through the end of the year, maintaining this unprecedented strength.
Come and see North Key Largo Real Estate at the Ocean Reef Club. Enjoy the fabulous family friendly festivities on offer.
To keep up with the Watsons follow their antics on Instagram and Facebook. Staying up to date with events on The Reef in these interesting times has never been easier with the Ocean Reef Press. Don't lose sight of home prices and new listings in this always interesting marketplace.
Watson Luxury Properties is based at Ocean Reef, right on the Golf Course! We are North Key Largo Real Estate's property experts who really 'Know The Reef.'
We know Real Estate at the Ocean Reef Club as well as Ocean Reef Club Rental Properties. Specialists in a broad field for many decades, our family team can help you with your investment or home search.
Perhaps you began your search in the nearby Key Largo Real Estate market but didn't find what you were seeking. Allow us to help you find your home in North Key Largo Real Estate's exceptional family-oriented environment.
Watson Luxury Properties at Ocean Reef Club - has been member owned and family operated since 1998
'Where Quality Service Is A Family Value'
The Watson family adheres to this adage, doggedly. We deliver client services with consistent levels of excellence.
Ask us anything, with over 50 years of combined experience in North Key Largo's exclusive Ocean Reef Club Real Estate sales and rentals, we 'Know The Reef!'
Our team is never happier than when we are out on property showings. Whether it is a water view, a slot for your boat or a peaceful golf course abode, we just know we have the perfect spot for you.
The Reef's full service marina offers a perfect place to purchase a slip for your boat. It is a world class marina and boasts some of the world's most elegant and quietly famous, beautiful yachts.
13B FAIRWAY LAKES - WITHIN STRIKING DISTANCE OF THE GOLF COURSE
PERFECTLY APPOINTED MARINA SLIPS FOR EASE OF ACCESS
Our two championship golf courses offer open fairways and beautiful foliage - with some challenging greens. What about a game of Golf this Independence Day weekend? Come see a little slice of heaven from your golf cart on our beautiful award-winning landscaped roads and pathways. This oasis never gets tiresome.
MICHAEL WATSON - ALWAYS IN THE SPORTING FRAME OF MIND
Because we are family operated we know a real estate showing is never 'just' a showing.
Please join us for a true lifestyle experience, by way of a showing. If your search for Premium Key Largo Real Estate didn't satisfy your tastes, we are happy to offer Ocean Reef Club Real Estate listings to improve the day.
And if COVID travel is restrictive we offer the ever more popular, increasingly effective virtual 'in person' tours
FABULOUS FEATURE? WE THINK SO! For your piece of paradise think about this water front land. This one is on the market and waiting for you. What an open water view too! Start building your dream home now in the friendly and safe confines of the Ocean Reef Club. We can't say enough good things about this view and the potential for your future enjoyment here.
Of course our family team would love to meet you to discuss your options. Our slower pace can really do wonders for everyone's state of mind. in particular clearing ones own mind to ascertain what is truly going to make you and everyone you love and cherish, absolutely happy.
North Key Largo Real Estate as it is known to locals offers buyers premium listings wrapped in this special environment. Watson's team offer condominiums, and homes with or without yacht slips, as well as waterfront homes, wooded hammock homes and homes with that great Golf Course view.
One feature many love about The Reef is 'safety.' The Reef is a well managed haven of elegance and a way of life that truly welcomes families within the community.
You can find us at 9 Barracuda Lane, Key Largo or call us and we would be happy to meet you socially. Perhaps join us you over the Independence Day weekend. Chat with us during Tee time on the Golf course. Or with lines in the water, we love to spend time in and on the ocean.
Enjoy Summer Golf - or just golfing in general - we've discovered that choosing to get your game right starts here. It really really does. Especially with the Big Cups Golf Tournament. A tradition not to be missed.
From Scott Kirkwood, Director of Golf, from the "Golden Tees""We have an exciting slate of summer tournaments this year, and the next one is coming up on Saturday, July 4. The annual Independence Day Big Cup Golf Tournament will be held on the Dolphin Course.
'You can make your own tee-time on ForeTees and the format will be individual stroke play. The catch is, the holes will be much larger than normal, more than twice the size! See how low you can go with our always popular Fourth of July tradition,' says Kirkwood.
If you are in love with the idea of Golf but cant imagine yourself out there, for love nor money, with no clue what to do. Or have played before but know you can do better, consider a training session with Derek Swoboda, who talks about Bioswing Dynamics and the Blueprint For Your Golf Swing. He is going to measure your Shoulder Plane, Torso Plane and Hip Plane and then you'll get to see how good you can really be.
North Key Largo is our Ocean Reef Club home and here at Watson we are so excited for the upcoming Independence Day 2020 events, primary amongst them would be the fireworks on Buccaneer Island from 9pm to 930pm. If you aren’t scheduling something from the list golf, fishing, shopping, drive in movie, this year it's Robin William's in 'Jumanji' it's not too late to register for Independence Day 2020 Ocean Reef activities.
Or simply arrive and enjoy. And what fabulous choices. Whether it's a new home or a fun Independence Day weekend with family and the possibility of a prime piece of Ocean Reef Club Real Estate. We hope you enjoy the decades of expertise presented to you by the member owned, family operated Watson Luxury Properties team. And we can't wait to meet you. We are here and loving the life, ready to share that enthusiasm with you.
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