Sellers Hold Buyers Back And Home Construction Stalled
Utah continues to have a low inventory of homes on the market leaving buyers without many options to choose from. In April we saw sellers take their homes off the market and new home construction stall due to the stay at home orders. Yet, we still have buyers!
This tight supply of homes for sale is prompting competition among buyers in some markets. The real estate brokerage Redfin reported that 41% of its agents’ offers faced a bidding war in late April and early May amid the COVID-19 pandemic. In some markets, the bidding war rate was above 60%, the brokerage reported.
“Demand for homes has picked back up after hitting rock bottom in April, and that uptick paired with a lack of supply is a recipe for bidding wars,” says Taylor Marr, Redfin’s lead economist. “Home buyers are getting back out there, searching for more space as they realize using their home as an office and school may become the norm. But sellers are still holding off on listing their homes, partially due to economic uncertainty and concerns of health risks. In some hot neighborhoods, there may only be one or two homes for sale, with multiple home buyers vying for them.”
At my last sales training here in Utah, many agents were discussing the fact that they have buyers looking for specific homes and amenities that are simply not found on the market today; neither in new home construction or existing homes.
The National Association of Realtors has seen an uptick in buyers looking for homes nation wide but sellers seem to be holding them back due to fears of exposing themselves to COVID-19 and misinformation.
Some sellers are unaware of the new ways Real Estate transactions are being handled. Every aspect of a Real Estate transaction has dramatically changed. From home inspectors, to appraisers, lenders, and Realtors, the industry as a whole has come together with the public's safety in mind. They are following all recommended safety guidelines and in many cases are going beyond the mark to help clients feel safe.
Others fear that buyers are not out looking and that their homes will get a negative stigma for having been on the market too long which could not be further from the truth. Buyers are still out there and they are looking for homes. When there is low inventory and lots of buyers, home prices remain high and homes sell quickly.
In addition, Dean Mon, chairman of The National Association of Home Builders, is optimistic that we will see a strong rebound in new construction as the economy begins to open up stating that, “despite today’s numbers, there is an undercurrent of long-term positivity in the housing market that will allow for a strong rebound. Our builder confidence index has already shown signs of a turnaround.”
If you are a seller, listing your home now, before the new construction begins, is crucial. We are still in a sellers market and we need sellers to come to the table. If fears over COVID-19 are keeping your from listing your home, please contact our office today to learn of the many ways that our Industry has adapted. You can be in control by planning and design every aspect of your transaction. We want you to feel safe and protected from this virus while still moving forward with your hopes and dreams. It really is a great time to be a seller so don't let fears over COVID-19 stop you from exploring your options.
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Source: National Association Of Realtors