Is the summer real estate market hot, or has it taken a pause? Jon Lahey CEO and Founder of The Fine Living Group at eXp, one of the DC area’s top real estate firms tackles the topic.
Has there been a change in home prices?
“There has not been a change in pricing but there has been a shift in the market in the number of offers on houses. Before, a seller would get 20-30 offers on their house and now they may only be getting 5-6 offers. Also, sellers who are over pricing their homes are not getting the same response they did three or four months ago. “
Are there fewer buyers out there?
“There are fewer buyers out there because many who were looking for a new home several months ago got frustrated after being out bid and renewed their leases for 6 months to a year. When the market was hot in the spring, many potential buyers were doing a month-to-month lease. They may still be looking, but there is less urgency. There are also less buyers out there because many people are on vacation or traveling.”
Will home prices stay the same?
“Statistics show the market will go down. It will not crash but merely correct due to fewer buyers. We will not see as many offers 10% above the asking price each time. Although there is less inventory, rates are still low and it is a great time to buy or sell as there is less unpredictability in pricing.”
What will happen if mortgage rates rise?
“People will still be looking; however, the affordability of a home will become a factor. Many will not be able to upgrade or move up.”
Are buyers still taking extra measures such as forgoing contingencies, tapping 401k for a down payment to win when bidding on a home?
“Yes, they are still doing all of this to get their desired home.”
Have the vaccines affected the number of homebuyers?
“The reason there are fewer buyers is that people are more confident to travel and are not out house shopping. Because there were so many more buyers this spring compared to other years, the typical summertime drop has been more dramatic this year.”
Are homebuyers basing the location of a potential new home on school ratings?
“Yes, school ratings have always been a factor in the DMV (DC, Maryland, Virginia) area.
We also see people selling due to not needing good school. Some examples are parents who opted for private schools or empty nesters who do not need a house in an expensive school district. In some cases, by moving to a less expensive district you can get the same house for $250,000 less.”
Are home offices as important now as they were a few months ago?
“Yes, this is still important as more people are requesting extra space, whether that be a designated office on the main floor or an extra bedroom or basement to make into an office.”
Construct America Magazine | The Home of Construction
