October 2020 Western Upstate Home Price Update
The housing market has continued its booming recovery, and sellers continue to benefit.
But things might be changing soon. Let me give you the details:
1. Demand still outpaces supply by a lot
This August, sales of existing homes rose 10.5% compared to the same time last year. This is the fastest sales pace since December 2006, before the Great Recession.
The only thing that’s holding sales back is a lack of homes on the market.
Inventory of homes for sale is down 18.6% annually to a three-month supply. For reference, the last time that sales were this robust, the supply of homes was twice as high.
2. Home prices continue to rise
Unsurprisingly, this mismatch between supply and demand has pushed home prices to new record highs. The price of a median home is up 11.4% annually.
Also, homes are now going under contract after just 14 days on average, which is 14 days faster than one year ago.
3. More homes on the market soon?
Of course, high demand and record prices benefit sellers tremendously. But there’s a third aspect of the market that might spoil the party.
Right now, the number of seriously delinquent mortgages is growing quickly. Many homeowners are struggling to make their payments during the economic problems caused by the pandemic.
However, with current high home prices and low mortgage rates, the vast majority of these homeowners have equity in their homes.
This means they could sell their home instead of being forced into foreclosure. The upshot is we might see a flood of new homes for sale on the market soon.
So what does this mean for you?
Well, if you’ve been thinking about selling, you might consider taking action now. The reason is the current golden moment. Demand is high, and homes are selling quickly and for top dollar.
However, with the chance of many more homes for sale hitting the market, that might change soon.
In other words, we might see supply match demand, so prices start to stagnate and buyers get more choosy. That’s why it’s a good idea to at least look at your options right now.
To see what your home could sell for in the current seller’s market, take a look at this home value calculator, which is based on recent area sales:
And if you have any questions about listing your home in these current conditions, or are even ready to kick the process off for real, give us a call at (864) 985-1234. I have my finger on the pulse of the Upstate market, and we are here to help.