Homebuyers in Sumner County homes might experience unusually high competition in a historically slow time of year for the housing market, according to Sumner REALTORS®, the nonprofit trade association for local real estate professionals.
The latest Multiple Listing Service data shows an increase in new properties under contract and property closings for September 2020 compared to one year ago, but total inventory and new listings are at least 23% lower than last year. Low inventory combined with high demand has resulted in residential properties staying on the market for an average of just 18 days.
“Record-low mortgage rates are sustaining activity in the market during a global pandemic and when we typically see a seasonal lull. Demand is driving up prices, and that is creating equity for existing homeowners. Homes are selling really fast, often with multiple offers. The downside is that we could be pricing first-time buyers out of the market who are unable to afford the rising cost of homes. It is likely to continue until we balance out the demand with much-needed supply,” said Shellie Young Tucker, ABR, CRS, GRI, 2020 President of Sumner REALTORS®.
Markets across the U.S. are experiencing similar trends. Typically, the housing market slows down in the late summer months and into fall, but record-low mortgage rates are luring more buyers into the market and there are not enough properties available to meet the demand.