Home Sales About to Surge? This Winter Could Be a Record Breaking!

Real estate, like most industries, has a season where more homes are sold during a specific time of the year. The number of homes sold in the spring is almost always much greater than at any other time of the year. It’s called the spring buying season. Historically, the number of buyers and listings for sale significantly increase in the spring and remains strong throughout the summer. Once fall sets in, the number of buyers and sellers typically drops off. 

During 2020, however, that seasonality didn’t happen. The outbreak of Covid and subsequent slowing of the economy limited sales during the spring market. The home sales last fall and winter saw a dramatic increase in home sales over previous years. The only thing that held the market back was the extremely low inventory. 

What About This Winter? 

Some experts expected the market to slow down and return to a normal winter buying season. However, data now shows that this is likely to occur. Buyer demand is still extremely strong, and it appears we may soon see a somewhat uncharacteristic increase in the number of homes coming to the market. 

Buyer Demand Remains Strong 

The latest Showing Index from Showing Time, which tracks the average number of monthly showings on available homes, indicates buyer activity was slightly lower than at the same time last year but much higher than any of the three previous years (see chart below): 

A report from realtor.com confirms buying activity remains strong in the existing home sales market: 

“New housing data shows 2021’s feverish home sales pace broke a yearly record in October, . . . with last month marking the eighth straight month of buyers snatching up homes more quickly than the fastest pace in previous years.” 

Buyer activity for newly constructed homes is also very strong. Ali Wolf, Chief Economist for Zonda, recently reported that Stuart Miller, the Executive Chairman of Lennar, one of the nation’s largest home builders, said this about demand: 

“There is still a great deal of demand at our sales centers with people lining up and not enough supply.” 

The only question heading into this winter is whether the number of listings available could come close to meeting this buyer demand. We may have just received the answer to that question. 

Sellers Are About to List – Right Now 

Instead of waiting for the normal spring buying market, new research indicates that many homeowners are considering selling their homes on the market this winter. 

Speaking to the release of a report on this recent research, George Ratiu, Manager of Economic Research for realtor.com, said: 

“The pandemic has delayed plans for many Americans, and homeowners looking to move on to the next stage of life are no exception. Recent survey data suggests the majority of prospective sellers are actively preparing to enter the market this winter.” 

Here are some highlights in the report: 

Of homeowners planning to enter the market in the next year: 

65% – Have just listed (19%) or plan to list this winter 

93% – Have already taken steps toward listing their home, including working with an agent (28%) 

36% – Have researched the value of their home and others in their neighborhood 

36% – Have started making repairs or decluttering 

The report also discusses the reasons sellers want to move: 

33% – Have realized they want different home features 

37% – Say their home no longer meets their family’s needs 

32% – Want to move closer to friends and family 

23% – Are looking for a home office 

Data shows buyer demand remains unusually strong going into this winter. Research indicates the supply of inventory is about to increase. This could be a winter real estate market like never before. 

Bottom Line 

If you’re thinking of buying or selling, now is the time to contact The Aaronson Group.  We are here to help you with all of your real estate needs.  Call 949-388-5194 or email: info@previewochomes.com