The real estate market has been on fire for the past year. For example, recent statistics show that the average for-sale listing price is more than 25% higher today than it was in 2020. It’s also worth noting that sellers have been receiving multiple offers on their listings- which means that working with an experienced real estate agent (regardless as to whether you’re wanting to buy or sell a home) is more important than ever.
For-sale properties are also still selling like hotcakes. According to a recent news report, real estate brokerages are reporting record-breaking sales volume, and most are reporting an extraordinary boost in sales volume.
Below are just a few other trends that are worth keeping an eye on.
Virtual tours are still popular
In the early days of the pandemic, lots of people shied away from in-person viewings. Homeowners didn’t want to host open houses, and lots of buyers didn’t want to visit other people’s properties. Although virtual tours had been used prior to 2020, last year, the practice exploded.
Virtual tours were beneficial for a variety of reasons that spanned beyond health and safety concerns. First, they allow house hunters to tour multiple properties, in multiple locations, at a drastic time savings. Driving from home (to home to home) takes up an enormous amount of time, and virtual showings helped streamline that process.
Also, notable, is that virtual tours let aspiring snowbirds view different listings from the comfort of their own homes. Instead of hopping on a plane, renting a hotel, and coordinating with a rental car company, house hunters could view homes remotely. Although in-person showings have started to pick up, virtual tours are here to stay.
Home purchases from international buyers are down drastically- but US-based buyers are more than filling the gap
The National Association of Realtors reports that between April 2020 and March 2021, that sales of US homes to international buyers dropped by 31%– and while some might see that drop as being concerning, domestic house hunters have more than made up that gap. Florida Gulf Coast University’s Regional Economic Research Institute reports that in July, single family home sales for coastal communities rose by 4% compared to levels recorded in July 2020. The institute also reports that active listings are down 70% year-over-year, and that single family home prices for all three coastal communities are up by an astonishing 27-39% during that same reporting period. Suffice to say, sellers are still in the driver’s seat.
The market may be at or near its peak
Fortune Magazine reports that while prices have indeed been skyrocketing (and that buyers are still paying top-dollar for new purchases), that there are signs that the housing market might be starting to cool off. What does this mean for you? If you’re a seller, it means you’ll want to list your home while the market is still hot, because if you list it sooner than later, you’ll likely get a better selling price. If you’re a buyer who isn’t in a hurry to make a purchase, it means you may want to wait a few months before you start actively looking. Mortgage rates are still quite low, and if you hold off on buying until 2022, you’ll likely pay less than if you hopped in the market now.