The pace of home buying has been on the rise since late March, early April, and sales records were broken in both June and July. The number of homes going under contract, known as pending sales, are well above last years pace, but can that continue as we head into the fall and what does it mean to you if considering selling your home? Watch the following video, or continue reading below, to learn more.

How Much Equity has Your Home Gained? CLICK HERE to find out INSTANTLY, for FREE!

Homes have been selling at a rapid pace and there are currently no indications that it is going to be slowing down as we head into fall. However, it is becoming increasing difficult for buyers to find a home to purchase. The total number of homes currently for sale in Frisco is 50% lower than a year ago, but pending sales are 15% above last years numbers. In Prosper, pending sales are up 32.9% year-over-year while the number of homes for sale is down 49% compared to last year. If you’ve been considering selling your home the coming weeks might be the perfect time to do so.

According to the Pending Home Sales Report from the National Association of Realtors (NAR):

Pending home sales in July achieved another month of positive contract activity, market three consecutive months of growth.

The Pending Home Sale Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001.”

The 15% increase in contract signings we saw in Frisco match the national year-over-year average, while the 32.9% increase we saw in Prosper is double the national average. The number of signed contracts to purchase homes is well above where the market was at this time last year. Lawrence Yun, Chief Economist at NAR notes:

“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market…Home sellers are seeing their home go under contract in record time, with 9 new contracts for every 10 new listings.”

The following graph shows the recovery the real estate market has seen with regards to pending sales compared to previous years. The deep blue V marks the slowdown experienced in the spring followed by the exponential jump in sales experienced through the summer, blowing past the sales pace of previous years:

Pending Sales.png

What Does This Mean for Sellers?

For sellers that had initially planned on selling in the spring, but decided to wait because of the health crisis, it may be time to go ahead and make that move. The are plenty of buyers in the market right now creating an ideal situation to sell for the highest possible price in the shortest amount of time.

How Much Equity has Your Home Gained? CLICK HERE to find out INSTANTLY, for FREE!

Is This Trend Likely to Continue?

There are currently no signs of buyer demand slowing as we head into fall. As CNBC notes:

The usual summer slowdown in the housing market is not happening this year. Buyers continue to show strong demand, spurred by the new stay-at-home world of the coronavirus and by record-low mortgage rates.”

Danielle Hale, Chief Economist at realtor.com, concurred:

“In a typical year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we move into fall. Due to a delayed spring season and low mortgage rates, we could see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales will depend on whether sellers participate or decide to stay on the sidelines.”

How long this trend continues, as Hale mentioned, really depends on homeowners deciding they are willing to sell their homes now. The market needs more homes to satisfy ongoing buyer demand.

Bottom Line

If your current home doesn’t satisfy your family’s changing needs maybe it’s time to seriously consider a change. If you have questions about selling your home in the current market please reach out and let’s talk about it.


Want to Stay up to Date on the Latest Market News?

Become Part on my Weekly Email Community