Q: What Impact Will Fall Have on Our Market?
by: Jeff Quintin, on August 24, 2020 - Uncategorized
Fall will bring about change in our market, but not drastic change.
The market is super hot right now, but what will happen once fall hits?
Normally, once the fall selling season starts, it stays strong until the middle of November. After that, the holiday season gets underway and people get more distracted. I believe the market will continue to be strong, although demand will likely decrease slightly and inventory will increase.
The challenge right now is that inventory is way down year over year (about 40%), so even if it rises 10% or 20%, we’re still nowhere near where we were a year ago, or even at the beginning of March of this year. Due to this low inventory, prices should stabilize, and we should see some appreciation. Despite decreasing slightly, demand will remain relatively high.
In addition to asking whether the market will change this fall, a lot of people are also asking why the second-home market down at the Shore is so hot. There are a couple of reasons for this.
First, people are staying closer to home. I haven’t been on a plane in three months, and many other families are avoiding long-distance travel and canceling the vacations they normally would’ve taken. If they have to stay inside or shelter-in-place again, why not do so in a place they feel more comfortable, or an area that’s not as congested?
”Due to this low inventory, prices should stabilize and we should see some appreciation.
Second, people are putting more money into their homes. The more they improve them, the more comfortable they feel in them. This is causing them to decide against selling and cashing out.
At the end of the day, real estate still signifies a place of safety and comfort for people. It’s where their closest friends and family are gathering—whether that means the backyard, inside the home, etc. That’s why I think the market will stay strong this fall and continue to appreciate. Supply and demand will change, but not drastically.
If you’d like to know more about our market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m here to help.