Bev Murray Real Estate Home Buying

Whether it's next month or next year, sooner or later the pandemic will come to an end and it will be safe to get back to the business of real estate in earnest.

When that happens, the floodgates will open and home buyers should be preparing themselves for competing to get the home they want.

Lots Of Buyers And Few Homes For Sale

In fact in some areas of the country, a seller's market is already in full swing and home prices are up. Home buyers are finding themselves in a bidding war to get the home they want.

Despite the months of uncertainty earlier this year people still need to, and want to, move into new homes. The lock-downs across the country have created a large disparity between buyers looking for new homes and the number of homes available on the market.

The disconnect between supply and demand has been great for sellers, pushing up home prices as home buyers are forced to bid against each other for fewer homes for sale, and sellers are receiving multiple offers.

Danielle Hale, Chief Economist at realtor.com explained it this way:

"People are surprised that prices are rising, not falling, because in the last recession home prices fell, the difference this time is the severe shortage of homes for sale…We are seeing bigger price increases with [a limited] number of homes…That is likely to lead to more competition and potentially multiple offers and bidding wars."

The trend was supported with hard data in a recent Realtors Confidence Index (RCI) survey carried out by the National Association of Realtors (NAR):

“On average, there were about three offers on a home that closed in May, up from just about two in April 2020 and in May 2019 (2.3 offers).”

HousingWire, a real estate and housing industry website also noted the trend stating:

“42% of homeowners who made a purchase during the January to May time period ended up in a bidding war, demonstrating the strong demand for homes amid low inventory.”

The evidence is clear, despite what has been happening, the economy has proven to be resilient and as people return to work - whenever that occurs - competition for homes has set the stage for frequent bidding wars, and higher sale prices. All great news for sellers, but not so much for buyers.

So with a strong sellers market in place or just on the horizon depending where you live, home buyers will need to be extra confident that they do not end up paying too much for the home they want, and that their initial offer is strong enough to close the deal fast.

How Buyers Should Make Sure Their Offer Stands Out

Hire A Local Expert - The best way to do this is work with an experienced Realtor that is an expert in your local area. A market like this is not time for a DIY transaction. Now more than ever it's important for home buyers to work with a real estate professional. In a survey completed by NAR, results showed 54% of buyers and 62% of sellers indicated that “Particularly during the pandemic, a real estate agent’s guidance is especially valued.”

Get Pre-Approved For Your Mortgage - Nothing says your serious like money. Having a pre-approval for a loan will help sellers see you are not just another tire-kicker and are serious about buying the home. Having a pre-approval letter will go a long way to giving the seller confidence that the sale will not fall apart because of financing issues, and help your offer stand out.

Whether the Sarasota area puts COVID behind us tomorrow or next year, buyers should expect to have to compete until the supply of available homes becomes balanced once again. In this new market it's never been more important to have an expert Realtor at your side. Despite everything, the economy has shown to be resilient, and the future for home sellers is looking brighter.

If you are thinking of buying a new home or preparing yours for sale contact Bev Murray today.