Real Estate News
What Does Fall Real Estate Mean for Buyers and Sellers?
The real estate market could be heading into better territory this fall season as certain economists project home sales will pick up. With the remaining COVID-19 pandemic, sales have not been as high in the fall season. Additionally, the Delta variant has also created concern. Regardless, sellers continue to list their homes on the market. The following factors contribute to a successful fall season ahead for the real estate market:
Real Estate Housing Inventories
According to The National Association of REALTORS®, housing inventories increased by 7.3% in July, showing an upward incline for the rest of 2021. As long as more homes are listed in the market, the less chance of a bidding more and multiple offers. As seen in the first half of 2021, buyers were having issues keeping up with homes that were quickly being taken off the market. The average home is on the market for 17 days, making buyers quickly decide if they should submit an offer.
Buyer Demand for Real Estate
As mortgage rates remain low, buyer demand will continue well into the fall season. Since rates may never be this low again, buyers may feel they’re missing out on a good deal and submit their offer quickly. Additionally, with more homes listed on the market, buyers may be more confident in finding a home.
However, until that happens, there has been an increase in bidding wars. During the beginning of the pandemic, buyers came up with creative and dangerous ways to impress sellers. This included forging contingencies on sales contracts, applying for loans to appear as all-cash buyers, and emptying retirement accounts, all referred to as the going-for-broke approach. Yet, as the fall season arrives, buyers are now becoming more cautious.
Advice for Potential Buyers
Buyers who are waiting for the opportune time to buy should start getting their finances in order now. The more you have saved up for a down payment and closing costs, the quicker you will be able to make an offer on a house you want. However, other factors outside of a savings plan factor into getting a home. Buyers should also work on their credit score, as this can help target the type of monthly payment you will have to pay.
Advice for Potential Sellers
For those wishing to list their home on the market for the fall season, there are a few things you can do to increase selling odds. Create a fall cleaning checklist for both the inside and outside of your home. To add curb appeal, rake up fall leaves, wash your windows, and clean any debris out of the gutters. To prepare the inside of your home for showings, clean the bathroom and kitchen counters and make sure all rooms are neat and tidy.
Additionally, if your house was listed since the spring season, you may need to lower your listing price to entice buyers. You can also offer seller concessions as a negotiation tactic, which are closing costs you may have to pay during the home transaction. Seller concessions may include part or all of the following:
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Property taxes
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Title insurance
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Loan origination fees
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Inspection fees
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Recording fees
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Appraisal fee
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Attorney’s fees
The fall season is proving promising for the real estate market. If you are a home buyer looking this fall season or a home seller who is thinking about listing their home on the market, do not delay. HomeHunt can help you get started. Contact us today!