Community Marketing & Real Estate
Is the Housing Market Starting to Normalize?
Much has been said about the advent of COVID-19, its high physical toll and loss for so many, as well as its damage to so many businesses. Unfortunately, this chapter in our history is still unfolding.
As we’ve all witnessed in The Landings and as reported nationally, residential real estate has been a surprising beneficiary of the pandemic, and our community is no exception. But, like everything else, one can rest assured that change is underway.
Let us first look at the latest data being reported nationally as of June with the understanding that the fluctuation weekly and monthly is unprecedented:
- June existing home sales have risen 1.4% from May to June and 22.9% from one year ago. This was lower than expected and follows May’s 1.2% decline.
- Existing home sales in the South were unchanged from May, posting an annual rate of 2.6m in June, up 19.4% from the same time one year ago.
- The median existing home sales price rose at a year-over-year pace of 23.4%, the second highest level recorded since January 1999.
- The median price in the South was $311,600, a 21.4% climb from one year ago.
- Bidding wars for homes nationally have dropped from 74% to 65% in the last two months – still a big number!
- Inventory of existing homes has been rising as reflected by June’s increase from May of 3.3% to 1.25 million, or a 2.6-month supply at the current sales pace but down 18.8% from one year ago.
- Days on the market for existing homes was 17 days.
- Sales in the top 50 master planned communities (most with substantial new construction availability) are up 12% for the first half of 2021 vs. 2020.
- Consumer sentiment reflects that only 28% of those surveyed say it’s a good time to buy a home, down from 47% in April and 32% in May.
- Mortgage rates for existing homes remain at historically low levels, but quickly rising prices and the absence of inventory are keeping many buyers out of the market, which is reflected by dropping mortgage demand. In other words, it’s still a seller’s market but things are cooling as household incomes can’t keep up with the accelerating home prices.
- Various analysts predict that this cooling will continue, and that price growth will slow to about 3% over the next year but that overall prices are not expected to decrease.
In The Landings, the unique combination of our island location, downtown Savannah, and a top regional airport combined with the matchless combination of all Association and Club amenities has found an even larger audience given people’s paradigm shifts in how they want to live as a result of the pandemic along with the Company’s ever-expanding marketing reach. Our results within the context of the national data above is as follows:
- The Company’s new inquires/requests for information are up 95% over July of 2020.
- We continue to see record requests and actual Discovery Visits.
This leads to us having numerous buyers in a holding pattern just waiting to see the right home come on the market.
- Essentially, our low inventory reflected below is our only current barrier to even higher sales numbers.
- The Landings Company has put under contract properties with a combined value of $170.8m, or +41% year-to-date July.
Yes, we, too, are still in a seller’s market, but we also expect price growth to slow somewhat as we are seeing the super-heated velocity of sales is cooling as some of this year’s “irrational exuberance” has ebbed. This is supported by the aforementioned statistic that consumer opinion that it’s a good time to buy real estate is falling.
That said and as reflected above, the standing inventory of available homes on the market continues to be at an all-time low. If you are interested in selling your home and want the absolute highest value and best likelihood of a sale, please call one of us today (912-598-0500).
The Landings Company is 100% self-funded and can only continue with your support when selling your home, referring friends and family, or renting your home. Thank you again for your support this year!
Your Company, The Landings Company!
This article was originally published by The Landings Association on their website. Visit landings.org to read the original article. https://landings.org/news/2021/08/31/community-marketing-real-estate