Pent Up Demand Results in a Robust Seller’s Market

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Real Estate

By Rose Sklar

As 2020 rolled in during its first-quarter real estate was experiencing robust growth over the same quarter in 2019. As we all have experienced, this growth track appeared to be halted by a worldwide pandemic, however, this halt was only momentarily and the effects have resulted in pent up demand and Realtors across South Florida have been busy sell- ing property.

As we go back to work and start returning to the market, we begin to see a V-shaped recovery in the housing sector. If you build it they will come. As newly selected agents selling new construction locally, the demand is high. Why is the pent up demand so great? Keep in mind, sellers took their homes off the market, for fear of catching the virus. Others decided not to come to the market and wait and see. Now, with the inventory at historic lows and the 30-year mortgage rates at the lowest level in history, people are coming out of the wood- work and taking advantage of this market. New mortgage applications are up over 30% in July as reported by Brian Franks at Guaranteed Rate. Buyers are out looking for alternatives from urban living preferring a single-family home with a yard, a pool, a playroom, a home office, or extra space for the family to “quarantine”.

“The National Association of Realtors data indicates an increase in the demand for real estate transactions, and this is what we’re seeing, as well, across South Florida, with Coldwell Banker Realty
agents increasingly busy with listings and closed sales, even in the face of the COVID-19 pandemic.”

The graph below shows the last 2 years, show- ing that July year over year is up 33% in pending sales for Weston across the board and almost 50% is now pending (or under contract)

 

sklar team

 

Predictions for 2020 Real Estate market

Many high-density cities such as New York and Chicago may see a grand exodus to the suburbs again. Many who have given up the family home with a yard for the kids and dog and usable square footage, may now after the crisis find themselves longing for their own private yard, pool, and gym again. Many jobs will now become more virtual as we move into our new normal.

As we are entering the digital explosion, virtual staging, virtual open houses, zoom listing, and buyer consultations appointments have and will become the norm. All of these related industries must now embrace the technology, the videography, and the virtual reality of our future in real estate. Realtors are seeing a continued surge of buyers, in particular leaving and moving to South Florida from high tax states such as NY, NJ, and more. In particular, those buyers who have the means to buy a second home or investment property are actively looking and buying.

Published in Our City Weston Magazine - Sept. 2020