Homesnap recently surveyed real estate agents to gain their perspective on the upcoming fall home-buying season. Here are the results:
Home Are Selling at a Faster Pace
Although the COVID-19 pandemic is far from over, the U.S. housing market continues to prove its resilience and be highly competitive for both buyers and sellers. It’s no question that homes are currently selling at an extremely fast pace. With buyers outpacing sellers as they return to the market, there’s increased competition for fewer listings. In fact, Homesnap data shows that major U.S. cities including Boston, Chicago, Miami and Washington, D.C., have experienced a sharp decline over the past six months in the amount of days a home spends on the market before selling.
Homesnap recently spoke with Evan Marbury, a Compass real estate agent in the D.C. area, who shared that “homes are selling extremely fast—some within a day or two. I wrote an offer last week that was $150,000 over asking and lost. Sellers can put a house up on the market and will receive multiple offers within 16 hours right now.”
– Boston-proper has experienced a 74.07 percent decrease in the average amount of days a home spends on the market.
– Washington, D.C.-proper has experienced a 72.2 percent decrease in the average amount of days a home spends on the market. In July, homes were spending approximately 10 days on the market before selling as opposed to 36 days in January of 2020.
– Chicago-proper has experienced a 59.7 percent decrease in the average amount of days a home spends on the market.
– Miami-proper has experienced a 88.1 percent decrease in the average amount of days a home spends on the market. In July 2020, homes were spending approximately 12 days on the market before selling as opposed to 101 days in January of 2020.
Carrie J. Little, designated managing broker/owner of CarMarc Realty Group in West Chicago, who currently manages a team of 38 agents, told Homesnap that “Right now, Chicago inventory is extremely low. As a result of this, prices are rising, and agents are getting caught in multiple-offer situations. My team has even sent me videos of the line of agents waiting to show the same home!”
Homebuyers’ Suburban Draw
Although homes continue to sell at a rapid pace, the criteria of what buyers are looking for has shifted. Looking at data from over the past six months, Homesnap found that a substantial amount of homebuyers have been looking for properties in more rural areas outside of major city limits—people are seeing the appeal of a more spacious suburban lifestyle.
For example, suburbs outside Boston such as Cambridge and Newton offer a spacious lifestyle that many homebuyers are looking for, but are also in close proximity to the city. Therefore, areas such as these are becoming hot spots for homeowners who are ready to sell to first-time buyers moving out of the city. As a result, Homesnap data shows that these areas have recently experienced an uptick in new listings brought to the market per month, as well as seen a rapid drop in the average days on market—this trend is expected to continue for the upcoming Fall 2020 season.
Another example of this can be seen in Naperville, Ill.—a western suburb of Chicago located approximately 35 miles outside of the city. Homesnap data shows that since January 2020, Naperville has experienced a 69.4 percent decrease in the average amount of days a home spends on the market.
“What we’re finding [in Chicago] is families that live in condo buildings within the city are beginning to move towards the Chicagoland suburbs because of the stay-at-home order. While this isn’t necessarily true for everyone, it’s one trend that my agents are noticing,” said Little.
Homebuyers’ City Limits Criteria Changing
However, others that wish to stay within major metropolitan areas are re-evaluating their need for space and as a result, home offices and outdoor areas have become must-haves. Agent Evan Marbury told Homesnap, “As far as people moving away from the [Washington, D.C.] city, I haven’t necessarily seen a larger migration any more than before but, the trend of people no longer wanting a one-bedroom condo is real—people definitely want more space. So if you are going to buy a condo, more space and a balcony are now non-negotiables, as before, they were a ‘nice-to-have.'”
– Boston: 77.09 percent increase in new listings brought to the market from January 2020 – July 2020.
– Washington, D.C.: 40.7 percent increase in new listings brought to the market from January 2020 – July 2020.
– Chicago: 45.06 percent increase in new listings brought to the market from January 2020 – July 2020.
– Miami: 1.61 percent increase in new listings brought to the market from January 2020 – July 2020.
“Buyers are looking for a space that has an area for a home office. People don’t necessarily need an extra room to convert into an office, but they are looking for a space that is light and bright and can appear like an office on Zoom calls,” said Little.
Depending on the city, homebuyers can have the best of both urban and suburban worlds while staying within city limits. For example, in D.C.’s urban neighborhoods, buyers can have a single-family home with greenspace but also have great walkability and access to entertainment. “D.C. is one of those places where you can get both—you don’t have to leave the city to feel like you’re in a suburban area,” said Marbury.
For more information, please visit www.homesnap.com.