Home buying season is here
Fall is the new spring, at least, according to real estate industry experts. The pandemic has pushed traditional peak home-buying season to later in the year with record-low interest rates, increased buyer demand seeking more spacious homes and flex space, and buying timelines not needing to revolve around the school year.
Instead of experiencing their usual fall decline, home prices will at least hold at their current “record high levels” for the next quarter, according to Mike Simonsen, CEO of housing market analytics firm Altos Research.
Buyer demand is strong and housing needs are evolving for both buyers and sellers. As the world continues to navigate through these unprecedented times, the real estate market is making an impressive turnaround and is on track for a robust recovery with record-low interest rates and a shortage of listings resulting in a fast-paced seller’s market.
If you’re a Central Oregon homeowner thinking about making a move, we’ve got three reasons to sell your home this fall:
1. Home prices are up & inventory is down
Two data reports recently released speak to the strength of the housing market:
The latest CoreLogic® Home Price Index (HPI) for the U.S. recorded an acceleration in annual price growth to 5.5% for July, about two percentage points faster than the prior July – despite much higher unemployment. The report cites rising demand, supply shortage, and record low mortgage rates fueling homebuyer activity for the gain.
Existing home sales hit their highest level since December 2006 – as sales continued to climb in August marking three consecutive months of positive sales gains – according to data from the National Association of Realtors® Pending Home Sales Index (PHSI) which shows a record high in August with a 132.8 reading, up 8.8% from July and up 24.2% from August 2019:
“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market,” said Lawrence Yun, NAR’s chief economist. “Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”
In Central Oregon, active listings declined 41% in August while pendings were up 49% and solds increased by 25%. The median sales price also rose 8%, per the Central Oregon Association of REALTORS® August 2020 market report:
2. Buyer demand is strong
There simply aren’t enough homes for sale to satisfy the number of buyers looking to purchase. Lack of inventory is a factor contributing to increased median sales prices; supply and demand. The supply of homes for sale is low and the buyer demand is high, thus prices are on the rise.
The already scarce inventory recently worsened due to the devastating wildfires in the Pacific Northwest and rising lumber prices leading to substantially increased costs for multifamily and single-family homes.
“Housing demand is robust but supply is not, and this imbalance will inevitably harm affordability and hinder ownership opportunities,” Yun said. “To assure broad gains in homeownership, more new homes need to be constructed.”
Builders are beginning to build homes again offering new construction options for buyers, though locally, developers face a challenge with available land and construction costs still high. Due to the pandemic, many homeowners were reluctant to list their homes earlier this year, however, this will change as the economy continues to recover which means that if you’re considering selling your home, now is a great time to do so with less competition and a large pool of buyers ready to purchase once they find the one.
The continued record-low rates are fueling an increase in mortgage applications and creating an even larger buyer pipeline than current inventory can accommodate.
“An unprecedented lack of for-sale homes combined with persistently low mortgage rates have stoked a competition for housing in recent months that will not relent,” said Matthew Speakman, a Zillow economist. “With mortgage rates poised to remain low for the near future, barring a sudden surge in inventory, it appears that upward price pressures should endure into the fall.” (Source: HousingWire)
3. Housing needs are evolving for sellers & buyers
The need for housing will continue to grow and buyer needs are already evolving as many re-assess their current space and for those in the workforce able to continue to work from home. With stay-at-home orders requiring people to spend more time in their houses, needs have shifted and new trends are emerging as many re-evaluate what they find most important in a home.
As highlighted in NAR’s August study, the 2020 Work From Home Counties report, remote work opportunities are likely to become a growing part of the nation’s workforce culture.
“In 2020, homes went from the place people returned to after work, school, hitting the gym or vacationing, to the place where families do all of the above. For those who now spend the majority of their hours at home, there’s a growing wish list of what they’d change about their homes, if possible.” (Source: Zillow)
Among the top reasons people are making a move this year include finding a home offering spaces to accommodate working from home, virtual schooling, a home gym, and outdoor space.
- 5 Reasons Why Now Is A Great Time To Sell Your Central Oregon Home
- Blog: What To Do If You Want To Sell Your Central Oregon Home
- Video: Advice For Central Oregon Home Buyers & Sellers Right Now
Sell your Central Oregon home this fall
If you are thinking of selling, now is a great time to do so with minimal competition and high buyer demand.
We welcome the opportunity to assist you in the sale of your Central Oregon home. Tell us more about your property via the form below and a FRED Listing Specialist will follow-up promptly.