Typically in the fall months, people are settled and the market slows a bit. But in 2020 this is not the case. With COVID further impacting a long term housing shortage coupled with many families with children virtually learning and historically low interest rates, there are people looking to move and not enough homes to go around.
In the graph below you can see that since our last recession, there has been underbuilding which is contributing greatly to the housing shortage across the nation. This coupled with lower resale homes on the market has driven prices up and caused bidding wars in many areas. In September year to year the average home price went up over 14%!
According to Freddie Mac in 29 of the 50 states, there is a low vacancy rate. This means there aren't enough homes for the amount of people that need one. Below captures the states (in the darker blue colors) with low vacancy rates.
What does this mean for you?
If you are looking to buy, be prepared to: 1) Money talks. Be prepared for a possible bidding war, and to come to the table with your own closing costs. 2) Move fast. If you see something online that you love, go see the home ASAP as it may not be available a few days later.
3) Don't settle. If you don't like a home, don't feel pressure to make an offer just to have something to live in. You need to like where you are living. Stick to your budget and keep a list of needs and wants handy to help you make a decision.
Also, in Virginia you receive minimal disclosures about the home you are making an offer on, so it is key that you still do an inspection and ask for repairs if you find things wrong with a home you want to purchase.
Selling? Even though it is considered a sellers market, it is still crucial to work with an agent to: 1) Give you a comprehensive market analysis and price your home right to get top dollar 2) Time the listing as best as possible so that you have time to find another home before your current house sells
3) Market and help you prepare your home for a top dollar sale; and
4) Use their real estate knowledge and skills to negotiate on your behalf!
Questions? Contact our team today to discuss your real estate needs!
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