September Market Update
For this September Market Update, there might be a slight shift coming over what we saw last month, but mostly because more listings are coming on at a slightly faster rate. We definitely need more of that.
First, this quote from our friends at the Cromford Report:
“It looks like it is not going to surpass 342, bur 341.7 is still the highest market index reading we have ever seen.
New listings are appearing at a faster rate now, up some 15 to 18% from this time last year. But demand is also very strong and is soaking up most of the new supply within a few days of its arrival. The market is still very difficult for buyers, but if the seasonal pattern conforms to the norm, we should see a few more listings to choose from during October and November.
Having said that, 2020 has so far failed to conform to any of the usual seasonal patterns.”
So, what does this mean for the rest of the year? Well, we only have four months left, so it is not likely that this dynamic will change in that time. So, if you are getting a listing ready, you can feel confident that things will be largely the same by January.
Remember, September through November is the second busiest time of the year, after February through June. Once people sit down for Thanksgiving dinner a general tired feeling comes over them and they seem to slow down until late January. I’m no medical professional, but I think its the tryptophan.
On a side note, I was on the phone with an interested buyer yesterday to said, “I heard that if Biden wins the election, that home prices are going to plummet.”
As much as I want to see a new administration, we have to reject the idea that home prices are going shift wildly, regardless of who wins. The real estate market just does not work that way.
So, if you hear that kind of speculation, just set it in the “wild partisan talking point” circular bin.
We are seeing high home prices because there is a shortage of inventory. I think that will change only when one or a few of the following things happen: people sell off homes they are using for short-term rental and/or long-term rental; laws are changed to make it easier to build condos; land is freed up to build more owner-occupied homes; or more homes are built.
And any one of those will take a while.
So, if you are looking to purchase, don’t expect the market to change soon. Get a home if you need it. If you are thinking of selling, get your listing ready for that end-of-summer market.
