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August 2020 Home Price Update

Friends and Clients —

And…we’re back! The real estate market is currently experiencing a rebound unlike anything we’ve ever seen.

If you’ve been waiting on the sidelines, just know right now is a unique moment you will want to take advantage of. Let me give you the details:

According to the National Association of Realtors, sales of existing homes jumped nearly 21% in June compared to May (the last months for which we have complete data). This is the largest monthly gain since tracking began in 1968.

Sales of new homes also jumped by 13.8%, the largest one-month increase since 2007.

Much of this reflects pent-up demand from the spring season, which was paused by the coronavirus pandemic. However, it’s also a sign of more fundamental changes.

For example, first-time buyers accounted for 35% of all buyers in June. That figure had been as low as 30% in recent months. This could be an indication that, with social distancing restrictions and new work-from-home setups, more folks are realizing the value of owning their own home.

Also helping things are record-low mortgage rates. Several weeks ago, the 30-year fixed mortgage rate fell to an all-time low of 2.87%. That’s a full percentage point lower than a year ago.

These low mortgage rates are making homes more affordable; they are also supporting continued price growth.

As a result, June made history: The median price of an existing home sold rose 3.5% annually to the highest price on record.

The point of all these statistics is simply this:

If, like most folks, you’ve been sitting on the sidelines because of the pandemic, now is a great moment to act.

If you are thinking about selling, you will have a strong tailwind because inventory is so low.

At the end of June, the supply of existing homes for sale fell 18.2% annually. This means there is a lot of unmet demand, so you could sell quickly and for top dollar.

If you want to get an idea of what your home could sell for in the current hot market, take a look at the following home value calculator, which is based on recent sales:

Enter your address here to find out what your home is currently worth

Of course, with the pandemic situation still developing, there are no guarantees about how things will look in several months. However, right now is a golden moment for the real estate market. 

So if you have any questions, whether you’re buying or selling, give me a call at (574) 529-5228. I’m here to help.

Have a great day,

Natasha Hernandez

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