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What Will the Housing Market Look Like In the Upcoming Months?

By December 14, 2020 at 10:40 am
What Will the Housing Market Look Like In the Upcoming Months? (Photo : pixabay)

Are you thinking about putting your house on the market or buying property in the near future? Everyone knows who's been in the real estate game for a while knows that the housing market soars during the spring and summer. It's no wonder why - the weather is beautiful, people have survived the holidays and received their tax refunds. The pandemic has changed everything. 

No longer can we go about our lives freely without worrying about becoming infected with the virus. The result of this fear can be felt across all industries and the housing market is no different. Despite this, Homelight's 2020 Q3 survey reveals that 92% of surveyed real estate agents say it's a seller's market, even though 87% report there aren't enough houses to meet demand. 

Let's take a look at some of the ways the pandemic has affected real estate now and in the future.

1. Perfect time to sell

It's a seller's market in many areas and that means it's a great time to pull the trigger and put your house on the market if you've been toying with the idea. Interest rates are low and it's predicted to stay at record-breaking lows until 2023 - at the very least. This means that with rates this low, more buyers are likely to enter the market to take advantage of these low rates.

2. Fewer houses available

It's true that it's a seller's market but that doesn't mean there's an overabundance of houses just ready to be snatched up. In fact, some areas are experiencing such low inventories, 88% of agents say bidding wars are on the rise! This means buyers are going to have to bring their A-game when it comes to making offers; but, more on that later.

3. Higher housing prices

Since there are so few houses on the market, sellers have the upper hand and they can list their homes a little higher than the house will appraise for. Also, bidding wars will increase the price of the house. When there's more than one interested buyer, their goal is to make the seller an offer they can't resist and that usually means they'll increase the amount they're willing to pay. 

4. Renovations galore 

As much as we'd like to find a turn-key house when we're searching for our new abode, it's more like searching for a needle in a haystack - not to mention they probably have a higher asking price. Instead of finding turn-key properties, buyers are willing to purchase a house and take on renovation projects to truly make the home theirs. 

But it's not just buyers who are doing reno projects. Sellers are also doing renovations in an effort to appeal to more buyers and get that irresistible offer. 

5. Clean offers

We've mentioned sellers are holding out for the best offer, that doesn't necessarily mean they're looking for the offer with the highest dollar amount. Some buyers will sweeten the offer by submitting a clean offer. 

What's a clean offer? It's an offer that doesn't have any strings attached. The buyer is ready to sign on the dotted line right then and there. They aren't going to ask for any repairs and the transaction isn't contingent on the sale of their home. Oh, and the buyer isn't going to ask the seller to help pay closing costs, which means more money in their pocket!

The housing market is always going to have it's highs and lows. Right now, it's a strong seller's market, but it's almost impossible to say for sure what the market will be like six months down the road - even though 72% of agents say inventory will increase or at least stay the same.

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