Eighty-eight percent of properties sold in less than a month, with the average home lasting on the market for 17 days in April 2021, the National Association of Realtors® Confidence Index Survey for April, which surveys NAR members, found.
This is an increase of 32% year over year, and homes lasted 10 days less on the market compared to April 2020. Each home had five offers on average and 53% of those offers were above listing price. And most Realtors® expect this trend to continue.
Home prices are expected to jump 6% year to year across the country, the report found. In Pennsylvania, Realtors® predicted home prices would go up 4 to 6%, with buyer traffic remaining strong. Additionally, seller traffic is expected to remain stable.
Cash sales represented 25% of all transactions, compared to just 15% a year ago. Additionally, first-time buyers decreased, representing 31% of buyers, compared to 36% a year prior. Nearly three-quarters of first-time buyers put down less than a 20% down payment.
With homes moving so quickly, the report found that 10% of buyers purchased their home after only a virtual showing, open house or tour.
There is no doubt the pandemic has influenced many people’s homebuying choices. Eighty-five percent of homebuyers bought a home in the suburban, small town, rural or resort area and 60% of Realtors® reported they have seen an increase in buyers looking for work-from-home features in a home, like extra rooms for a home office or more space in general.
However, there are hiccups in sales, as Realtors® know. The most common issues for delayed and terminated contracts during this time related to obtaining financing, appraisal issues and home inspection or environmental issues.
By: Kelly Leighton on June 3rd, 2021 in Industry News
As we enter the middle of 2021, many are wondering if we’ll see big changes in the housing market during the second half of this year. Here’s a look at what some experts have to say about key factors that will drive the industry and the economy forward in the months to come.Read More