How Buyers and Sellers Can Capitalize on This Market
Spring is generally considered the strongest real estate season, but things this year are obviously a little bit different. Seasoned real estate experts and industry leaders, however, see every sign that the influx of market activity that typically hits in the spring will simply happen this summer. Here are the key metrics that indicate the real estate market looks to be hot in summer 2020, and here’s what you need to know if you’re looking to capitalize and list or buy soon:
Home Buying Is Delayed, Not Cancelled
According to a flash survey conducted by the National Association of Realtors® (NAR) in early May 2020, 42 percent of surveyed members reported their clients were delaying a home purchase by a couple of months. Another 16 percent reported no change in their clients’ buying behavior, and 12 percent were continuing the home-buying process but were reliant on technology (virtual tours, virtual communication, and so on) in order to comply with social distancing.
That 42 percent is the number experts are looking at as a strong indicator for the market in the summer of 2020. In May, these potential buyers stated they were delaying by a couple of months. That means the market looks to be inundated by these eager buyers in June, July, and August.
On the selling side, the survey revealed similar information. Just over half of sellers (51 percent) stated in May they’d be delaying the home-selling process a couple of months. Just as the buyers are looking to get back into the market, the sellers look to be returning as well, and that’s a recipe for a big boon to the real estate industry come the heart of summer.
Home-Buying Criteria Haven’t Changed
Another positive indicator for the real estate market this season is the fact neighborhood preference has remained virtually unchanged. Of the NAR survey respondents, a staggering 94 percent said, when it came to the desired neighborhood, their clients had not changed their search criteria. Only 5 percent said they were shifting their interest from the city to the suburbs, and a meager 1 percent said they wanted to switch from suburbs to the city.
Without a major disruption to buying preferences, the market is more likely to settle back, to normalize, and to become predictable again.
Good News for Sellers and the Bottom Line
When home prices tumble, that’s when the real estate market becomes volatile, and that doesn’t look to be happening in our current situation. In the NAR survey, 73 percent of home sellers had not lowered their asking prices, and only 1 percent reported lowering by more than 15 percent. This indicates home sellers are retaining the equity in their homes, which affords them the financial leeway to purchase again. Homes holding their value is just one way this isn’t anything like 2008.
How Buyer Behavior Has Changed
If you’re looking to list your house in the summer of 2020, you want to make sure it’s as desirable as possible to the potential buyers who will be in the market at that time. With that in mind, here are a few tips if you’re thinking about listing your home soon:
- Some “Wants” Are Now “Needs”
If your home has these timely perks, make sure to play them up as much as possible:Home Office
With more people working from home than ever, that extra room you never quite knew what to do with could make your house one hot commodity. Even if it doesn’t have a window or a closet (so you can’t technically list it as a bedroom), any spare room could easily be converted into a home office, and that’s definitely one big thing people are looking for in homes this summer. If it can’t be included in the bedroom count, make sure the listing, photos, and virtual tour feature it prominently.
Big Yard
With gyms and farmers’ markets closed, yards big enough to accommodate exercise and garden tending are extra popular right now. Over the last several months, lots of people have taken up gardening as a fun, productive hobby, and if your yard can keep that pastime going, it could be the factor to set you apart.
Bigger Kitchen
Without restaurants and bars readily available, lots of people also turned to home cooking. With the savings, health benefits, and satisfaction of concocting meals from scratch, lots of lifelong cookers were born. A generous kitchen with chef-friendly touches and appliances could go a long way in this market. If you’re looking for places to drop a few bucks to update a home, consider investing in a high-quality range or a generous fridge.
- Take Advantage of Every Piece of Technology You Can
House hunters are still touring homes, and they’re still buying homes. Things are just a little different now. Namely, people are much pickier about what homes they’ll see in person. In this past, they might have toured any home that looked remotely interesting, even if they doubted it was the right fit. Today, people only want to venture into a small number of carefully curated homes.
That doesn’t mean people aren’t still looking at lots of houses, though. They’re just doing so virtually. People are poring over photos and virtual tours to get a sense of a home before ever stepping foot into it. So, if you’re looking to list soon, make sure your home provides a wealth of photos and a detailed virtual tour. You want to look as enticing as possible to earn that physical walk-through!
- Get Your Home on the Market Sooner Rather Than Later
Mortgage rates are historically low right now, and those in a position to buy are eager to capitalize before that changes. With some people dropping out of the home search, there’s also less competition to a degree. If you’re considering selling your home, now might be the perfect time. Just like Realtors typically advise you to list in the spring, that’s bumped this year to the summer, and sellers are anxious to jump in now while all indicators remain positive.
All signs point to a big season for homes hitting the market. In the Northern Virginia and DC regions specifically, buyers have been struggling against low inventory for a long time now (even before the virus), which leads experts to predict that those motivated home buyers will snatch up what does hit the market. Whether you’re anxious to buy or motivated to sell, we have almost four decades of experience in this market and can help you successfully navigate this landscape.
We’ve compiled this list of ten tips for sellers right now. We hope it helps! If you are interested in listing, don’t hesitate to Talk to Ray!
