Housing is Heating Up Fast

You have heard the saying, “If you don’t like the weather, stick around 15 minutes and it will change,” right? The same is now true of the housing market.

When the pandemic hit our country hard two months ago, housing activity hit rock bottom. The majority of consumers were neither buying nor selling unless they had to. In the past week, that has changed as states began loosening their social distancing requirements.

Now, consumers are rushing to open houses, ready to buy new homes. There’s one problem, though. They aren’t finding many houses to buy. Buyers are finding themselves in bidding wars, offering more than the asking price for a chance to buy the home they really want.

And just like that, we’re back in a seller’s market. You may recall from our blog post just a weeks ago that it was a buyer’s market. The only people really selling homes were the ones who had to move. Many lowered their prices significantly just to get out of their houses.

Now buyers are putting in offers above the asking price, and houses are selling quickly.

According to real estate site Redfin.com, the pandemic has changed the way buyers look for and look at homes. With so many unanswered questions about working and schooling from home in the future, consumers need more purposeful space, and they want it now.

Unfortunately, sellers are still in no hurry to put their homes on the market. Realtor.com reports that new listings were down 29% annually for the week ending May 9, 2020. That’s an increase in activity over the last month, but it’s still low. Many consumers are still worried about the economy and also don’t want people coming into their homes for health safety reasons.

Here are a few tips to help, whether you’re looking to buy a new home or sell your current one.

Tips for Buyers

• Don’t let the quarantine force you into a rushed purchase. Get pre-qualified from First Bank before you shop to figure out how much house you can afford and explore your best options.
• If your family is bursting at the seams and you really need more space now, plan to spend more money if you find the house you really want.
• Don’t settle just because you are restless. Look at possibly renting a larger space temporarily and put your house on the market while it’s still a seller’s market.

Tips for Sellers

• There might not be a better time to sell your house. If the pandemic is the only thing keeping your from putting your house on the market, there are ways to limit in-person showings and still sell quickly.
• Be prepared to move out quickly once you sell, especially if you are using First Bank as your mortgage lender. Our team is fully staffed, working remotely and closing mortgages as quickly as possible. Not to mention, First Bank offers a Bridge Loan that is designed to lessen the stress involved with selling your home and buying a new one.
• Check out our recent blog post on tips for safely selling your home during the pandemic.

In real estate, you have to strike while the iron is hot. That time is now.