With businesses reopening throughout the country and some experts indicating early signs of a much-anticipated economic
recovery, more homebuyers are actively entering the housing market this summer. Today, housing is truly driving the U.S. economy forward. With so many buyers looking for homes to purchase and so few houses for sale right now, there’s a disconnect between supply and demand. This imbalance is pushing home prices upward while driving more bidding wars and multiple-offer scenarios. Danielle Hale, Chief Economist at realtor.com explains:
“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.”
According to the recent
Realtors Confidence Index (RCI) survey conducted by the National Association of Realtors (NAR), this trend is growing:
“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 also indicates:
“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.”
With more people returning to work we’ll continue to see the number of interested buyers increase. So, if you’re among the many people looking for a home to buy this summer, it’s important to ensure you have the right guidance from the start. This way, you make sure your offer stands out from the crowd when it really counts. Here are two tips to follow.
1. Get Pre-Approved for a Mortgage
When there are more buyers than sellers on the market, the process to find a home becomes much more challenging. One way to show you’re serious about buying a home is to work with a lender to get
pre-approved for a mortgage before starting your search. With a pre-approval letter, sellers will see your true desire to buy this year, potentially helping your offer rise to the top. 2. Don’t Buy a “Used” Home, Buy “New” Rock River Home
We’re not in a normal market. We are in one of the greatest health crises our nation has ever seen. The pandemic has had a dramatic impact on the journey consumers must take to purchase a home. To successfully navigate the landscape today, you need a true
expert on your side.At Rock River Homes, we provide Move-In Ready Homes for buyers with immediate needs. In addition to our finished homes that are available for sale, we have numerous Rock River Home Plan options that can be customized to your exact preferences!
If this is the year you’re ready to buy, don’t settle for a used home. Let’s connect to get the process started for a NEW Rock River Home.
By emilymorrissette-chime-me 8-18-2020
Kristen is part of our accounting team here at Rock River. She handles all our home estimating, home loans and many other responsibilities we throw her way. Please join us in wishing her a Happy 5th anniversary.
In her spare time, you can usually find her hanging out with her husband and 2 children, Scarlett and Ryker. They love to go camping!
Thanks for all you do.
By emilymorrissette-chime-me 8-11-2020
Some Highlights Mortgage rates hit another all-time low, falling below 3% this month. If you’re ready to buy a home, now is a great time to truly get more for your money at this historic moment.Let’s connect today to determine your best next steps towards owning a Rock River Home.
By emilymorrissette-chime-me 8-4-2020