Is This a Typical Summer for the Real Estate Market?

Is this a typical summer for the real estate market? Is it a good time to sell or is it a good time to buy? Does the housing market slow down in the summer? I

t’s normal to see the real estate market fluctuate. Typically, the summer months are a little slower-paced in the real estate market than the traditionally busy spring. This is not a typical summer, though. As the economy gets stronger and life is a little more normal, the real estate market is expected to have an unusually strong summer season.

Here’s how this summer is going and what this means for you.

Inventory is increasing

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), inventory levels have been rising since February of this year, 2021. If we take a look at the graph below, there’s an obvious upward trend, as shown in the green bars. Currently, there’s roughly a 2.5 months’ supply of homes for sale. And while inventory is going up as more houses are coming to the market, it’s still much lower than several of the previous summers, as the orange bars indicate.

If you’re looking to buy, some relief is on the way in the form of more homes coming to the market. Just remember, we still have fewer homes available than normal, so be patient in your search.

If you’re thinking of selling, now is the time. Call us to help you sell our house before it has more competition on the market. If you’re outside CA, we can refer you to one of our over 4,000 affiliated agents nationwide.

If you’d like to know what’s available in your area or what homes are selling for, let’s schedule a 1 on 1 call: Schedule Now.

Time on the market is still shorter than normal

Unlike the typical summertime trends, days on the market is moving at the fastest speed we’ve seen since the National Association of Realtors started collecting this survey-based information in 2011. The most recent Realtors Confidence Index shows that the average home is on the market for just 17 days, as shown in green in the graph below. This could be different in your particular city. This means houses are selling at a much faster pace than a typical summer, which the orange bars represent.

If you’re looking to buy, this means you need to be prepared to move fast. Brace for a quick pace and rely on your agent to stay in the know on the available homes in your area.

If you’re thinking of selling, data shows your house will likely sell quickly. If you’re worried about where you’ll go once your house sells, consider a newly built home as a good way to move up. I know of numerous new construction homes that are gorgeous!

Price appreciation is still rising 

The last big factor making this an unusually strong market this summer is home price appreciation. According to the State House Price Index from the Federal Housing Finance Agency (FHFA), we’re currently experiencing double-digit house price appreciation and have an average of 12.6% appreciation across the country. This means your equity is rising! The graph below uses data from the NAR to show a more detailed view of how prices have changed month-to-month over the past few years. The green bars show the current price increase or appreciation we’re experiencing today. Our current levels are well above what we’ve seen in recent summers, which are shown by the orange bars.

If you’re looking to buy, competition and bidding wars are driving prices up. But there is good news on the horizon. Just check our video:

Getting pre-approved can show the seller you’re serious and helps you know what you can afford. Once you do, work with your agent to make a strong offer that stands out. Check back for information on how to submit a strong offer. It’s not just about the money.

If you’re thinking of selling, take this opportunity to use your increased equity from this price appreciation to make a strong next move.

As always, to answer your real estate and other related questions, you can now schedule a 1 on 1 call with Clara: Schedule Now.

Bottom Line

No, this isn’t a typical summer. Whether you’re buying or selling, schedule a time so we can talk about your goals, dreams, and how you can take advantage of today’s market conditions.