In our 2020 August Market Update, we are seeing a continued and extreme shortage in listings. Seriously, if you want to sell now is the time.
Almost everything we bring on the market goes right away. The only exceptions are those with special circumstances. Perhaps they are cash-only sales, for instance.
As our friends at the Cromford Report are telling us, things are unprecedented right now and we have no idea where they will go.
“First let us look at the monthly average sale price per square foot for all areas & types. This stands at $190.87 today, This is significant because it breaks the record of $190.61 set as long ago as May 5, 2006. The difference is that May 2006 represented the dying peak of a bubble which would see prices fall dramatically from June 2006 through March 2009.
The current reading does not look like a peak at all. Not only is the latest reading a record, it has opened up a large gap compared with this time last year.”
The Cromford Index, the measure of how much of a buyer’s market or a seller’s market we are in, is shooting up faster than a Falcon One Rocket.
Does this mean that prices will continue to shoot upward? What could bring it down? It seems that the real estate market, renovations and construction of new homes seems to be the only good thing on the economic news casts.
Those who have job security are able to purchase, or they are getting renovations done on their homes. However, the only way out of this is to get more homes on the market.
I was thinking that people and corporations that bought up hundreds of thousands of cheap homes during the last recession to turn them in to short-term rentals would sell them. However, the rental market is also mad, so it seems they just turned them in to long-term rentals, if they needed to at all.
They took those homes out of regular market circulation and they have not come back.
So, it seems for the August market update, all we can report is that prices are going up, houses are selling in days and we have no idea what will happen.
Sounds like a recipe for challenges to come. If you have been thinking of selling, the market needs your home!
Call us at 602-456-9388.
