Real estate market cycles were disrupted by the pandemic. The typically busy months of spring and summer in 2020 were essentially canceled last year with stay-at-home orders across the world. But, you may recall that the home buying market as one of the first markets to recover. After quarantine, many families wanted to move to larger homes, others wanted to move closer to family members, and the option to work from home gave many people the flexibility to move to larger homes or even different cities. Low mortgage rates further bolstered the home buying market. And, it has been going strong ever since!
According to a new report from Redfin, 58.8% of the offers on homes written by the company’s real estate agents had at least one competitive bid in August. That percentage is down from a peak of 74.3% back in April. For Redfin agents, August’s numbers represent the lowest level of competition for homes since December 2020.
However, while Redfin agents are seeing less competition on a national level, many markets are showing no signs of slowing down. The housing shortage is still very real and there are plenty of buyers looking for homes. Raleigh, NC saw 86.7% of home offers with competitive bids in August. San Francisco, Tucson and Cincinnati are also competitive. In fact, of the top 10 most competitive markets, only 2 saw a bidding war rate decline in August – Charlotte and San Diego.
We have noticed a similar trend in Sun City Carolina Lakes. Over the summer, homes were literally ”flying off the shelves.” We would list a home and it would have multiple offers and go under contract the very next day. Now, while supply is still very limited with only 5 houses on the market in Sun City this week, homes are staying on the market longer. What is causing this change?
All of the competition has driven home prices to record highs in many areas. The trend of more days on the market and fewer bidding wars indicates that buyers are tired of competing for homes and don’t want to pay the premiums they were willing to pay just a few months ago.
The strong real estate market also attracted more people looking to start careers in the real estate industry. This means we have a lot more agents in the industry that do not have many years of experience and market knowledge. This could be a contributing factor in Sun City, as many of the current listings are being sold by agents who do not usually work in the unique active adult market of Sun City and the surrounding communities.
Whatever the cause, we may be returning to a normal real estate market sooner rather than later. Fortunately, our team has been working with buyers and sellers in Sun City Carolina Lakes for over 13 years. Our clients rely on our market expertise to help them with their transactions from start to finish. So, if you are considering a move, call Team Pogue today for a FREE consultation.