What Fall 2020 Is Expected to Bring to the Real Estate Market
The summer is quickly approaching its end and as the seasons are changing, so is the real estate market. The realm of home buying and selling has undergone several adjustments, especially with COVID-19’s disruption of the economy. With that being said, homebuyers and sellers are learning more and more about how these processes are panning out through the year. Although the summer and fall are sister seasons, they differ in many ways when it comes to real estate. We discuss some changes for homeowners to keep an eye out for this upcoming fall.
Less Buyer Activity
Despite the brutal temperatures the summer may bring, this is usually the time of year that homebuying is hot with activity due to more availability and free time. With that being said, real estate agents and companies tend to interact a bit less as buyers decide to place a hold on their home search. If you’re planning on looking for a home in the fall, don’t be afraid to take advantage of the time to see what real estate groups have to offer.
Inventory Remains Tight
With fewer people looking for a home (or looking to sell their home, for that matter), properties are listed less and less. The housing market has been through a lot throughout 2020, so it’s no surprise that inventory levels haven’t necessarily returned back to normal. Typically, listings come in fewer numbers during the fall—pandemic or no. This is a trend to expect almost every fall season.
Increase in Prices
When supply is running short, prices are expected to increase, and that speaks for many markets, especially when it comes to real estate. The amount of commodity, product, or service available and the desire for buying a new home is ultimately what regulates these prices. The lack of inventory the real estate market is currently experiencing will drive up the competition by a small percentage as we head into the fall season.
Mortgage Rates Decline
This is something we have seen since the earlier months of 2020. The market is allowing for minimal rates to increase, although rates have not risen nearly as much. This means mortgage rates are expected to stay low for a while. Approximately 3% has been the average interest rate in recent months of mortgage activity. Even better, once the fall is in full effect, prospective buyers won’t have to worry about increases.
Make The Most Out of Your Home Search with Summus Realty
Here at Summus Realty, we strive to provide our customers with their preferences and dream homes, no matter what’s going on in the real estate market. If you’ve been considering selling or buying a home, contact us today to learn more about how you can get started.