The Summer market is in full swing and looking great! Last year, with the global pandemic it kind of pushed some of the predictable timing of the market around but we appear to be back on our normal cadence. What we commonly see in the Summer is an influx of listings in the marketplace. This is due to a variety of factors, probably the most noteworthy of which is schools letting out for the Summer.
With the rise in inventory we typically see the prices soften some. That isn’t to say that they will not maintain Spring pricing but we generally stop seeing them climb. The highly competitive Spring market sets the price for the Summer and now that there are more options available for the buyers, we see less bidding wars and the stakes aren’t as high.
However, for the right home at the right price, we are still seeing multiple offers. A bidding war can happen any time of year and we don’t expect them to go away any time soon. Even with the increase in inventory, the absorption rate of the market is still very high. We see every week more homes coming on the market and going into contract the same week they list. With that, the stigma on houses staying on the market more than 30 days is still real, and we don’t believe it will go away this year, making it all the more important to price and prepare your home right.
Sell Now Buy Later
One of the most common concerns we hear from our clients is their fear of selling their home now and not being able to find a new one. Clients recognize one of the strengths of the market as a seller and the opportunity that comes with that but are hesitant to put their house on the market not having secured a place to go. They’re unsure if they should buy first and then sell or sell first and then buy. To that, we usually answer that we have never not found somebody a suitable home to go into and with this market being so strong, you can typically get a buyer to agree to allow you ample time to find suitable replacement housing. We have had a number of closings this year with possession delayed 3 to 4 months to give the seller time to find the next home that suits them.
Another way to tackle that fear is to sell now and then rent while you find your perfect home. The premiums right now for sellers are so great that in some cases you can live rent free for an entire year. We’ve had a number of clients say they’re not really certain where they want to live but want to sell. Therefore, they’ll sell, get a great price and change their scene for a little bit such as living downtown while they figure out what they want to buy.
Real Estate Trends Shifting
Real estate trends have started shifting back to a slightly more normal market cadence. We’ve seen the return of increased inventory in the summer. As things continue to return to normal, we may see a shift in the priority people are placing on their home and living spaces, only time will tell.
Johnna and I were privileged to go on our annual Evans family vacation in South Carolina this year with her whole family. We spent a week enjoying time with family and watching the kids play in the sand and the pool. This was Charlie’s first trip and now Stanley is at an age where traveling is really fun for him. We’re so glad we’re able to do family vacations such as these and hope to continue them in the future.