The lazy days of summer may be here, but it’s a busy season for the real estate industry. Home buyers are out in force looking for new homes, but fewer “For Sale” signs are popping up in neighborhoods across much of the nation, creating stiff competition for those seeking their dream homes.
This spring’s home-sale numbers reflect the continued housing inventory shortage. In May, existing-home sales decreased modestly, according to the National Association of Realtors® (NAR). Existing-home sales dropped by 0.4% from April and 3% from a year earlier to a seasonally adjusted rate of 5.43 million, NAR reported.
New-home sales are faring much better. Sales of new single-family houses climbed 6.7% in May, the highest level since November 2017, according to the Commerce Department. Construction of new homes is expected to increase 10% this year, to about 1.3 million new single-family homes, but that still won’t be enough to keep up with the growing demand, said Lawrence Yun, NAR chief economist, in an interview with CNN Money.
Besides low inventory, buyers are facing a gradual rise in loan interest rates, which have been trending slightly higher throughout 2018 and are expected to continue increasing the rest of the year. So, despite the tough competition, if you’re thinking of buying a new home this year, now is a good time to start.
Here are a few more reasons why the summer of 2018 is a great time to sell:
- NAR’s latest Buyer Traffic Report shows that buyer demand remains very strong in most parts of the country. Buyers are ready and able to purchase, with multiple buyers often competing for the same home.
- NAR’s Realtor® Confidence Index showed that properties were typically on the market for just 26 days in May, giving homeowners time to sell quickly and get settled in a new home before kids return to school.
- More buyers are getting pre-approved for loans before beginning their home search, making the selling process much faster and simpler. According to Ellie Mae® Origination Insight Report, the average time it took to close a loan in April was 41 days.
- With trees, flowers and other plantings flourishing, curb appeal is typically at its peak during the summer.
To make the most out of your summer real estate goals, it is vital to choose an experienced local agent with the resources and tools to guide you through the entire process, so contact an independent Coldwell Banker Residential Brokerage sales associate today.