During the first few weeks of the pandemic, there was a marked decrease in buyer activity, but once the ban on showings was lifted and people got used to operating in the new COVID environment, buyer showings steadily increased week-by-week.
Right now, supply is at a near all-time low, and demand is exceptionally strong resulting in near all-time high prices. I am predicting that there will be an influx of homes coming on the market in August which will relieve a little bit of the pressure on the market, but I expect that demand will stay strong through the fall since we have had a housing shortage for a very long time resulting in a large backlog of people who want to buy homes. It is unknown if the demand will remain strong through the holiday months, as traditionally people do not like to move at this time.
FORECLOSURES: Housing analysts do not expect a dramatic increase in foreclosures anytime soon for a couple of reasons.
- Housing prices are at record highs. This means that most people who are experiencing financial difficulty have equity in their home and can sell it. This was not possible During the Great Recession where prices had fallen 35% in 2008 alone.
- Regarding forbearance: Interestingly, it appears that people who requested forbearance seem to have done so as insurance just in case they lost their jobs, as 55% have continued to make their mortgage payments. Even if the economy worsens and there are many foreclosures, it could take a year or longer before we see those properties finally go on the market due to the lengthy foreclosure process.
For more details, check out this article on COVID-19 Foreclosures.
That being said, we are long overdue for a downturn in the market. Historically, the housing market cycles every 12 years. The last peak was in 2006, so we are due for a swing anytime now just in the normal course of the market.
COVID economic stressors and massive problems with Boeing might affect consumer confidence enough to slow down the real estate market. So my best advice for someone considering selling their home is to do it as soon as you possibly can to take advantage of the current market conditions which are extremely favorable toward sellers. We are at peak demand and peak prices right now, and there is no way to know how long this will continue.
Maxmize Your Homes Value
When you’re looking to sell your home, the details matter. At the Pelham Group NW, we use our years of experience to advise you on the Pacific Northwest market and help you not only list your home, but repair and stage your home to maxmimize its selling price.
Our clients are often surprised by the level of creativity and commitment we bring to selling their home. With our years of interior design and remodeling experience, our team has unique insight into how to showcase your home’s full potential and generate the best market response with a competitive pricing strategy and customized marketing plan.
Most of all, we handle all the details with the utmost care and discretion. Your personal and financial information is treated with sensitivity, and we always put your best interests first. That’s our promise to you. Give Kim Pelham a call today at 425.213.8761 or schedule a FREE consultation today to learn more about selling your home this Summer.
Katrina Eileen Brokerage | 
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