The Competitive Summer Market
Since late February of this year, we suspended our expectations of how the summer housing market may flourish, and now we are finally observing healthy signs, quelling worries of an extreme downturn. This realtor.com article, What Recession? Summer Home-Buying Season Heats Up as Prices Surge explains why this scenario is different from a recession.
Why this situation different:
- Housing market is remaining resilient
- High demand and low supply of homes for sale, causing price increases
- Mortgage rates have plummeted below 3%, an already fruitful incentive
- Median home prices are surging, up 4.3% year over year
- Many buyers were only halted in their buying process and now ready to purchase
- Although unemployment reaches unprecedented numbers, employed buyers remain motivated
While the market demonstrates greater markers of success than many of us could have foreseen, we continue to watch what may happen in the future. We predict that this summer will continue with the trend of low inventory and high demand, resulting in competitive buying. Beyond that, there are still many components to consider in terms of longevity such as mortgage qualification barriers, a stimulated national economy, and the vulnerability of unemployment.
Thank you for reading.