It is no secret that the housing market has favored sellers for well over a year. And the speed at which homes are flying off the market reflects that.
In July, it took an average of 23 days to sell a home from the time it was built, according to the Remax National Housing Report. It is down from an average of 24 days in June and 44 days a year before. It also marks the fastest movement of homes from the market since Remax began tracking these data back in early 2009.
Getting homes to sell quickly is great for the people who list these properties. The faster a house sells, the faster a seller gets to pick up the proceeds from that sale. But for buyers, fast-selling homes signal a tough housing market. And that’s why some buyers might want to pause their home searches today.
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It is a difficult time to buy
Right now, buyers are facing their share of challenges in the housing market. First, there is a very limited supply of available housing. Many sellers have stopped listing properties during the pandemic, so in the absence of multiple holdings, buyers must duke it beyond the same few properties.
The result? Bid wars are popping up everywhere in the housing market and driving up property prices. And buyers are also moving very fast when homes are available.
In a normal housing market, a buyer can check an open house and wait a few days to come up with an offer. In today’s market, the same buyer may submit an offer within an hour after the open house to get a shot at actually buying that house.
It is for this reason that buyers today may want to pause their home searches and wait for more stock to hit the market before moving on. Buying a home should be one of the momentous events of your life. And the fact that buyers are rushing to come up with deals means some may end up in their heads.
Right now, a huge shortage of stock is forcing many buyers to pay more than they can comfortably afford. And that puts them at risk of falling behind on their mortgages.
Now it is difficult that we do not know when more homes will start to come on the market. The current stock gap can generally be explained by the seller’s hesitation due to financial uncertainty and pandemic – related concerns. Although the economy has improved over the last year, the pandemic is still raging, especially now that the highly transferable Delta variant has taken over. And therefore, sellers can continue to stop listing properties until things calm down.
As long as inventory is limited, homes are likely to continue to fly off the market at record speeds. And buyers who decide to wait for things may end up taking advantage of more options and fewer hasty decisions down the line. They may also end up paying much less for their home – and not expanding themselves in the process.
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