2020: Buyers and Sellers Agree

The National Association of Realtors announced that their survey of buyers and sellers indicated both feel it’s a good time to buy and sell.

This survey was conducted in the fourth quarter of 2019. It reported that 63% of people believe now is a good time to buy a home. Of that 63%, 33% stated that they believe now is a very good time to buy a home. On the other hand, 74% of people polled say that now is a good time to sell.

The factors contributing to this sentiment are believed to come from the low mortgage interest rates, a strong economy and very strong job markets.

The current market climate reflects the intersection of these low interest rates combined with high buyer demand. One of the constraints within this market by the limited inventory is the problem is contingency clauses. A contingency clause defines a condition or action that must be met for a real estate contract to become binding. A contingency becomes part of a binding sales contract when both parties, the buyer and the seller, agree to the terms and sign the contract. Selling a home is not the issue in this current climate, it is rather finding the new place to buy or move to after you have sold the property.

According to the published study; the western region has seen home prices increase to the point that they have outpaced income. California is perhaps the priciest market, which has its own challenges.

Other facts from the study:
• Those polled say their prices have increased within their community over the last year.
• 30% say their prices have remained about the same over the last year.
• 6% believe that their prices have decreased over the last year.
• 48% believe prices will rise in the next 6 months.
• 11% believe that their prices will fall in the next 6 months.
• Millennials were most likely to believe prices would increase in their communities. 52% of those polled believe the US economy is improving.