With stay-at-home orders starting to lift in SC, data indicates homebuyers are jumping back into the market. Myrtle Beach, in particular, has opened most hotels to around 50% capacity, and people are flocking to the beach. With the warm weather and people being stuck inside, they are ready to get back to normal. Many families have put their plans on hold due to the COVID-19 pandemic, what we once called the busy spring real estate season is shifting into the summer. In 2020, summer is the new spring for real estate.
Joel Kan, Economist at The Mortgage Bankers Association (MBA) notes:
“Applications for home purchases continue to recover from April’s sizable drop and have now increased for five consecutive weeks…Government purchase applications, which include FHA, VA, and USDA loans, are now 5 percent higher than a year ago, which is an encouraging turnaround after the weakness seen over the past two months.”
Additionally, according to Google Trends, which scores search terms online, searches for real estate increased from 68 points the week of March 15th to 92 points last week. As we can see, more potential homebuyers are looking for homes virtually.
What’s the Opportunity for Buyers?
Finding a home to buy is still a challenge; this spring season many sellers removed their listings from the market. Though more people are now putting their houses up for sale this month as compared to last month, current inventory is still well below last year’s level.
We are starting to see more sellers list their homes in the Myrtle Beach area in the past 2 weeks. This is an indication of a strong summer season with more inventory coming, which will be suitable for buyers looking for the perfect home.
Steve Alston, a Keller Willimas The Trembley Group Professional Real Estate Agent, said, “Just in the past 2 weeks since SC has opened back up, I have been swamped with buyers wanting to find a home in Myrtle Beach.” Steve Alston also said, “many of my buyers have had to put their retirement to Myrtle Beach on hold and are now ready to move to the beach, so they don’t miss out on the summer fun.”
Another reason buyers are returning to the market, even with forced unemployment and stay-at-home orders, is historically low mortgage rates. Sam Khater, Chief Economist at Freddie Mac, indicates:
“For the fourth consecutive week, the 30-year fixed-rate mortgage has been below 3.30 percent, giving potential buyers a good reason to continue shopping even amid the pandemic…As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago.”
With mortgage rates at such low levels and states gradually beginning to reopen, there’s more incentive than ever to buy a home this summer.
What’s the Opportunity for Sellers?
If you are on the fence about listing your home in the Myrtle Beach area, Keller Willimas The Trembley Group urges you to ACT now. With fewer homes on the market at this time, you will have more of a chance to get a better price for your home. As more buyers start to look for homes again, the demand will be high, and inventory is low. This perfect storm for sellers will not last long once more homes become available on the market.
According to last week’s Weekly Economic and Housing Market Update from realtor.com:
“Weekly Housing Inventory showed continued tightening. New Listings declined 28% compared with a year ago, as sellers grappled with uncertainty and hesitated bringing homes to market. Total Listings dropped 20% YoY, a faster rate than in prior weeks, leaving very few homes available for sale. As Time on Market was 15 days slower YoY, asking prices moved up 1.5% YoY.”
Steve Alston also said, “we as a country have seen many changes in the past few months, the old way of doing things has changed, the season for selling your home has also changed. What once was the spring home-selling season is now the Summer home-selling season, now is the perfect time to list your home”. Steve Alston went on to say, “in the Real Estate Market you have to adapt to changes, as a Keller Willimas Trembley Group Professional Real Estate Agent my goal is to help my clients adapt and overcome these changes.”