This Summer has seen a “Flight to Safety” in the Real Estate market. And that means different things to different people:
- Many long-time renters are finally trying to jump into their first home purchase.
- Many people with smaller homes want bigger homes.
- Lots of people in town would prefer to be in the country.
- Some people with large payments see a smaller home with a smaller payment as “safer.”
While there is a lot of movement within the market right now (as we’ll discuss in the sales numbers), probably the biggest bet on “safety” that many people are making is to just stay put where they are. We’re seeing many people put off their moving plans, and just hunkering down in the home they have and riding out the uncertainties that are affecting us all at this time.
The June numbers are in, and this combination of “Safety” factors have resulted in something pretty remarkable. Across Washington and Benton counties, we had the fewest number of listings available (3,571) for any June going all the way back to June 2014 (2,883). However, we sold more properties last month than any month in at least the last 10 years (my MLS statistical data only goes back to 2010). We closed the month with 1,188 sales.
This combination of low supply and high demand has turned almost every transaction into a bidding war with multiple buyers trying to win the property. I’ve seen many properties going for $10,000 over the listed price (or more.) We’ve been in this highly competitive environment for several weeks now, with Pending sales outpacing New Listings entering the market by 20% or more every week for the last 9 weeks.
However, the competition may be reaching a breaking point, as we saw a drop in Pending sales during the week leading up to the 4th of July.
We also saw more homes complete the full transaction and Close that week. We had more homes Close than the number of New Listings entering the market.
All of this resulted in the highest Monthly Average Sales Price ever recorded. We got up to $276,361 for June 2020. This result is a combination of those bidding wars, and also a lack of homes from the traditional “Affordable” price ranges entering the market. We’re seeing many more Mid-range and Upper-end homes selling right now.
What it all Means for You
If you’ve been thinking of selling your home, PLEASE listen to me. We may be close to a price peak right now. We don’t know exactly how all this will play out. Hopefully, our record high prices can withstand the economic storm that has been brewing during this pandemic.
However, that may not be the case, and we may see prices fall later this year or next year. You may not be able to sell your home at these kinds of prices if you miss this window of opportunity.
If we do see a price decline in Real Estate, there’s no telling how long it may take to recover. This decline won’t look exactly like the last Recession, but there are lessons to be learned from it. In that one, it took Real Estate 7 to 8 years to get back to the previous highs.
Are you prepared to stay in your current home for the next 7-10 years? If not, let’s chat. I want you to make it through in the best possible position.
I book Free Strategy Sessions for all my clients. No pressure or obligation, but I’d be happy to help you put a solid plan in place to guide you through this “Flight to Safety.”
Would it make sense to chat for a few minutes?
Just book a FREE Strategy Session with me Here to block out your own time on my calendar.
You could also Send me a message or give me a call today! (479) 777-3379