Home buyers warned to expect “fierce competition” this summer



Low numbers of homes listed for sale will combine with record low interest rates to create a competitive home shopping summer, realtor.com said in its Weekly Recovery Report ending July 11.

The housing market is getting closer to pre-pandemic levels, Realtor.com’s index revealed. It reached 98.5 this week, which is just 1.5 points below its pre-pandemic baseline.

“Today’s market remains tipped in favor of sellers as would-be spring buyers are shopping well into what would normally be summer vacation season,” said Danielle Hale, realtor.com’s chief economist. “Home buyers, trying to take advantage of record low mortgage rates and make up for lost time, are finding limited and more expensive options. Although sellers are slowly acclimating to this unexpected surge in buyer interest, inventory is still lagging behind demand, which is driving quick time on market and listing price growth on par with this time last summer.”

The West continues to lead the recovery, now pushing ahead of its pre-pandemic benchmark. The Northeast also is above its previous baseline, too. The South and Midwest continue to lag behind their pre-pandemic baselines and are showing some signs of losing momentum in the recovery, realtor.com cautions.

Overall, realtor.com’s recovery index is showing the greatest housing recovery in Seattle, Boston, Denver, Philadelphia, and New York.

However, housing shortages continue. Over the last three weeks combined, new listings are down an average of 14% from a year ago. Also, median listing prices continue to increase at 7.9% over last year, which is faster than the pre-pandemic pace, realtor.com noted.

About Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.