We've all had a rocky few months and even though COVID-19 cases continue to rise, buyers are coming out in droves. Homeowners on the fence about putting For Sale signs in their yards may want to consider the following:
1. Buyers are scrambling to get into new homes before the next lockdown and/or furlough but inventory is at an all-time low and that makes it a seller's market. Because demand is up and inventory low, home prices have increased. However, once seller confidence increases, the inventory will rise and put the leverage back in the buyer's laps.
2. A connection between low inventory and COVID-19 stems from government stimulus checks, mortgage forbearance, and unemployment benefits that have, thus far, allowed many homeowners to avoid foreclosure. This break for homeowners already in distress will not last forever. For instance, forbearance isn't forgiveness. At some point, those payments will have to be repaid.
3. Another reason to blame low inventory on COVID-19 is that during the lockdown, many 60-plus homeowners who considered selling in January changed their minds in March because they didn't want a steady stream of buyers bringing their cooties into their thoroughly sanitized homes. And if they expanded on this notion of selling in order to move closer to their children and grandchildren, they shrank from the idea of risking their health by traveling around the country and wandering through other people's germ-ridden homes. Once these seniors are comfortable making their next move, the inventory will pop back up again.
4. While in lockdown the optimistic homeowners who were determined to sell once restrictions were lifted, began the process of preparing their homes to be show-ready and their efforts were rewarded. During this same time, anxious buyers couldn't wait to take advantage of record-low mortgage interest rates. Unfortunately, buyers who have socked away money for down payments and can comfortably close this summer, may not have the same income and savings in spring 2021.
For answers to all your real estate questions, call Leslie Ramsey with Hot Springs 1st Choice Realty at 501-620-3909 or email her at [email protected]