Market Update November 2020
Can the market keep up it’s pace in the seller's favor? And will this cause a crash like 2008? I continue to get these questions over and over from people, and the bottom line is that no one has the answers. But what I can do is let you know what is happening right now in our real estate market. Almost every home that we are selling here in the Foothills of Tucson, AZ 85718 and Oro Valley, AZ are selling in record times and some at list or above list depending on the price range. Some homes are even receiving multiple offers!
But why? Why does that keep happening? Well, let’s dive into it. Hi Allison Murphy with eXp Realty. What we do know is that just as predicted in from real estate experts and advisors earlier in the year that we would see a V shaped recovery, which means that the market drastically dropped and slowed down when the pandemic hit, but they predicted that once things got back to normal, or once our “new normal” set in, that the housing market would recover. As seen here from this graph from the “Housing Market Recovery Index” we see that it has. This index looks at 4 components of the market 1. Demand 2. Supply 3. Price and 4. Time on Market. The index is showing that we are now exceeding levels prior to the pandemic. Data from the Mortgage Bankers Association, Zillow, and The National Association of Realtors shows that leading indicators that determine a strong market like showing times, purchase applications, pending sales, existing home sales, new home sales are all up. Indicating we are in a very strong market. Also factors like Inventory levels for both traditional inventory and new construction are down, we have limited inventory, which again is an indication of a strong market in the favor of sellers. So although I cannot predict what will happen in the future, just as anyone else can’t, what I do know is that right now, we are seeing a very strong real estate market. Feel free to reach out to me at no cost or risk for a hassle free strategy session. I’m looking forward to hearing from you and as always, make it a great home selling and buying day!!!
- Mark & Lynn L.