09/06/2020
Good morning everyone! Quick rundown of the current housing market conditions. 100-300K = Sellers market, 300-500 = Even market, 500K+ = Buyers market. Covid has created a unique situation in our markets where it is not just a buyer's market or a seller's market, but it rather depends on the price point. Because of Covid earlier this year many people/first time home buyers buying at lower price points that weren't able to buy homes in the past were able to save up money and pay off debts due to making more money on unemployment then they were at there jobs. This coupled with the fact that they weren't able to spend any of that income because everything was closed, has created the perfect storm for creating many new and first time home buyers, which is creating a ton of pressure on the market from 100-300k. Since builders do not build homes in that price range, it's simply a supply and demand problem. Now if you're in the upper echelon of the market 500k+, the market is stagnant also because of Covid. This group of people are making a lot less than usual on unemployment, or are business owners that have been suffering, and many of them not able to receive PPP loans. This is then coupled with lending requirements getting tighter on jumbo loans, and rates becoming less favorable at those price points due to lender fears of forclosure. This has all created the need for many people to sell, but not that many buyers in the market, so yet another supply and demand problem in the other direction. Hopefully this all evens out soon, because there is a lot of frustration for people looking to buy at the lower end and people to sell at the higher end. The good news is if you're looking to sell a home at the lower end (100-300k) and buy one at a higher end (500k+) right now, the world is your oyster!
