Once you’re in the market to buy or sell a home, you’re going to notice every little thing you hear about the housing market.
It could be on the TV, a headline or article online, friends, family, coworkers — everyone has an opinion on how the real estate market is doing. The problem is, most of what you hear is based upon national data, trends, and statistics. Even if it’s “local” insight, it’s often still too broad and general.
Real estate markets are very localized. They vary between towns and cities, and from one neighborhood or price range to the next. And you may be surprised to learn that — despite the economic effects of the COVID-19 pandemic — the housing market in Green Valley is still a “sellers market” due to relatively low inventory and short times on market.
For the month of August 2020, the median days on market in Green Valley plummeted to just 12 days, down from 28 days in July, another strong indicator of low inventory and buyers competing for available homes. The median sales price dropped slightly to $219,000., as more houses under the $200K price point came on the market.
Inventory, a key indicator, remains low, with only 148 active listings in Green Valley as of September 1, 2020. As a result, the “absorption rate” (supply of homes) continued a steady decline, dropping to 1.3 months in August, down from 1.5 months in July, 1.7 months in June, and 2.3 months in May.
Generally, an absorption rate of less than 3-4 months indicates a sellers market; an absorption rate of 5-7 signals a balanced market, and 8-9 months or more indicates a buyers market.
The median sold-to-list price, another key indicator, remained strong at 98.7 percent, indicting little movement on price, due in part to multiple offer situations, especially in the under $250,000 price point.
There’s good news for buyers as well. According to Freddie Mac: Mortgage rates “continue to remain near historic lows, driving purchase demand over 20 percent above a year ago.”
That means securing a low interest rate on your mortgage can save you tens of thousands of dollars over the course of your loan — so while not everyone has the ability to buy in today’s climate, if you’re able to purchase a home, now is a great time to make a move.
Bottom line: Don’t base your mindset or decisions on what you casually hear from day to day, or read in the headlines.