Here’s my latest update on the market, and what to expect moving forward.

I hope everyone is doing well despite the nation’s current circumstances! Unfortunately, our area is having to go back under lockdown—for example, we’re no longer allowed to dine in at restaurants for the time being. How is that affecting the real estate market? Well, a majority of the people who work in the restaurant industries (except maybe the owners) are renters, so I foresee issues within the rental market coming in the next few months to a year since those people may struggle with paying rent. 

Also, the rate of employment has been going up. There used to be a 13.5% unemployment rate in our area—now we’re down to 11%. Jobs are starting to pick up again, people are going back to work, and companies are restructuring and reorganizing.

How is this impacting the real estate market? This has had a positive impact. People have job security; many have been working from home, which in turn causes them to reassess the amount of space they have there. People are finding they want to have a dedicated office space, a bigger yard, etc.

As of May, June, and July, more people have been buying properties on the outskirts of major cities; many are less concerned about traffic now that they’re having to work from home, and some employers are cutting costs by shutting down some of their office spaces.

“Buyers, it might be a good idea to lock in your rate today.”

The most important thing is that the economy keeps on running. Here are some key facts to note:

  • Last year between June and July, we had 3,141 home sales. This year during the same period, we had only 2,997. A decline of 5% is really nothing when you consider the fact that we’re in the middle of a pandemic.
  • We currently have 4,025 homes for sale, which is a fairly low number given that we sold 3,000 units in June.
  • Multiple offers are rampant from entry-level condos up to the luxury market; typically, the luxury market doesn’t do this well during times of uncertainty. 
  • We’re in a strong seller’s market because interest rates and inventory are low.

If you’ve thought about selling your home, be it to upsize or downsize, this is probably the best time to do so. If you’re a buyer who’s been renting and is unsure of the future, you might not feel 100% comfortable buying a home right now, which I understand. Just know that interest rates are around 3.25%, which is the lowest I’ve ever seen them in the last 12 years. It might be a good idea to lock in your rate today.

If you have any questions or would like to have a one-on-one conversation about the market and your real estate plans, don’t hesitate to reach out to me. I’d love to hear from you.