Sales Up – Prices Up
It’s been an unusual time, for sure, but New Home Sales continue to be strong. Home sales soared on through August, continuing an amazing run. This is likely due in part to buyers seeking a more comfortable home in the midst of this Covid-19 pandemic. But, there are other factors of note, and homebuilders are poised perfectly in many markets. The new homes that are ready to move into and priced right are going quickly. With national sales rising and new home inventory declining, prices will continue to escalate. This is the time to buy.
Home sales jumped 24.7% from the month before, according to the National Association of Realtors. That surge broke the record for a month-to-month sales spike set in June when completed home purchases rose 20.7%. July sales rose 8.7% over the same month last year.
Right now housing is selling at a booming pace. Unfortunately, home prices have increased as a consequence of high demand, relatively low supply and low interest rates. The number of homes available to buy was down. The 1.5 million houses, condos, and townhomes available for purchase in July reflected a 21% lower inventory than the housing on the market one year earlier. That creates an environment where prices have elevated. The national median price for a home topped $300,000 for the first time, reaching $304,100 — an 8.5% jump over July 2019.
Despite the higher price tags, many sellers are fielding multiple offers from buyers eager to take advantage of historically low interest rates that can shave hundreds of dollars off their mortgage payments. Buyers on average are signing a contract to purchase a home 22 days after the property goes on the market, the fastest turnaround ever.
The pandemic may have also impacted the market because more professionals were able to work from home, cutting out the need to live close to the office and ramping up the desire for a larger, more comfortable space as well as moving to a space that also has room for a personal office. Even as people go back to work, maybe it’s no longer five days a week and commuting becomes much less important, so people can buy further out from town centers.
The designs of the homes that focus on the look and feel but do not forget about the comfort and efficiency are of more interest to homebuyers. Creating homes that have all the space needed for home offices and positioned perfectly for working and living in the same area without the need to commute or with a short commute are selling rapidly. The concept of a “live-work” environment is stronger than ever.
As a builder, encourage the design team to look in to the spaces being planned with the focus on creating home office space with the perfect design layout. Think about utilizing as much natural light as possible to give the comfort and calm for people knowing natural light is a huge factor in providing for the vitality of the human work place providing energy to the mind and body. Also, carefully select lighting packages knowing how important it is for our future homeowners when it comes to working from home, especially in these uncertain times when comfort and familiarity are so critical.
The team at Parker Associates and PTC Computer Solutions follows the latest news and information in the industry so that we can stay on top of the changes that will affect your industry. There are many factors that are reliant on the economy and what is happening in the market both locally and globally. This affects the consumer market and the positioning. We have a time tested method of success in helping businesses with marketing and product positioning.
Parker Associates bases product positioning on specific consumer preferences from current surveys and focus groups published by industry periodicals and reports, or direct consumer interaction designed and carried out by Parker Associates experts and contractors. Along with the tremendous support of PTC Computer Solutions and their team of experts in handling research and data, we are sure about our results. It is too important for guesswork or client opinions. Give us a call at 904-992-9888 or email us at email@example.com if your prefer. We are always at the ready.
David WB Parker is a principal of Parker Associates of Jacksonville, Florida, marketing consultants to the real estate industry; President of PTC Computer Solutions, IT Specialist, and an active real estate sales professional with Barclay’s Real Estate Group based in Jacksonville, FL. He is also a principal partner of the REMA Team of professionals. He can be reached at 904-607-8763 or via email firstname.lastname@example.org.