Record Home Sales this Summer: How will the Fall Look?

This year has been a unique year for home sales with record-breaking sales throughout the month of June, July and August. It is projected that this will carry into the fall. According to the Pending Home Sales Report from the National Association of Realtors, the Pending home Sales Index (PHSI) rose 5.9% to 122.1 in July well above where the market was at this time last year.

Fall Slow Down?

Danielle Hale, Chief Economist at realtor.com notes that in a typical year the real estate market slows as the summer ends and the fall season progresses, however due to the slowdown this spring caused by stay at home orders, she believes buyer interest will extend longer than usual into the fall. Record low mortgage rates may also assist this trend. More home sales will most likely depend on whether sellers decide to list their houses or stay on the sidelines till spring of 2021.

Will the Election Effect Home Sales?

In analyzing over 50 years of housing data the Meyers Research Team found that the housing market historically has been a victim of deferred choices, thus in an election year new home sales fall on average 15% versus the normal 8% seasonal drop in home sales in non-election years. This is not cause for alarm however, because the data show that there is an increase in home sales following an election year. On average in a four-year cycle the year following an election is the best of the four-year cycle suggesting election uncertainty does not cause a loss but rather defers sales to the following year.

What Does This Mean to You?

If you are currently in the market for a new home, it looks like this sellers’ market is going to continue which means prices will continue to raise. This trend as well as record low interest rates suggest that now is the time to act because inventory is low and demand is still increasing.

If you are thinking of selling your home now is the time to jump in. Buyers are in the market right now. With so few homes available to purchase, homeowners today are experiencing more bidding wars, creating an optimal time to sell.

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