We have lots of buyers looking for homes and we've had a fantastic June and July in terms of sales. We have homes coming to market and sales are brisk but......we have a huge inventory shortage on the Monterey Peninsula. So, what is going on?
With the advent of the pandemic, many buyers from metro areas are looking to find more living space in less populated areas. Demand is up but supply is not keeping pace. From what we hear, sellers are hesitant to sell but perhaps their fears are unwarranted. Here are a few concerns and some arguments against the worry.
Myth - Houses aren't selling because of COVID. June and July were robust months for the Monterey Peninsula. Listings are being snatched up as quickly as they come on market. If a home is priced correctly, a seller can expect shorter days on market, multiple offers and quicker closings. It's a seller's market!
Myth: Home prices are going down due to COVID. This again does not currently ring true based upon data from the last couple of months. When supply is low, prices increase because buyers are competing for fewer homes. Multiple offers often create "over asking" pricing and historic low interest rates make it the perfect time for buyers to buy. It's a seller's market!
Myth: Buyers are holding off on buying homes due to the uncertainty of COVID. Once again, this assumption does not appear to be true. As mentioned, many home owners are looking to change their current living spaces based on their experiences with "Sheltering in Place". Working from home is allowing employees to move to areas outside of their commute zone so for now, buyers are on the hunt. This doesn't mean that everyone is moving out of urban areas and it's important to remember that purchasing or replacing a home will depend on continued employment and the ability to qualify for a loan. We'll see how the next few months play out with the economy. Remember, today's market may not be the same in a month or two!
Myth: Buyers aren't able to visit homes for sale. Although open houses are off limits right now, private showings can be arranged in-person. The number of visitors are limited and each person has to sign a COVID disclosure BUT you can see a home if the Seller is willing.
Source: Realtor.com - July 30, 2020
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