Pent-up demand for housing  has created a brisk late spring market.

Stay-at-home orders and the highest unemployment in recent memory, postponed the typical fast paced spring sales market for six weeks.  Since restrictions were lifted on May 7th, real estate transactions have resumed with new listings attracting multiple offers as they have in previous non-pandemic years.

Reduced Inventory

The inventory of homes is currently lower than normal because the lockdown made it impractical for sellers to list while buyers were unable to physically visit homes. In addition, some sellers have postponed listing to avoid having strangers walking through their homes during a public health disaster.

Multiple offers are common again

With more buyers competing for a very limited supply of properties, modestly priced homes below $200,000 are receiving competitive offers exceeding the asking price by an average of 10%.  More expensive properties sitting on the market longer.  This is consistent with previous years, so it’s safe to say that the real estate market is healthy and home values will continue to climb.

Favorable Mortgage Rates are Encouraging Buyers

In spite of economic uncertainty, mortgage rates are at an historic low of 3.24%.  This translates to a 30 year mortgage based on $4.35/month for each $1000 of borrowed money.  These low rates make it affordable for many buyers to offer above the asking price
when and additional $10,000 will mean only an additional $43.50 in the monthly payment.

What if you offer more than the home is worth?  Your lender is a partner in this investment.  He will hire an appraiser to determine if the property is worth the purchase price.  If the home doesn’t “appraise” you can either re-negotiate the price or walk away.