The REAL Market Update
Vacations are affecting the market!
Since July everyone that could find a vacation place to rent seems to have done some traveling, which is great for all those who have had the opportunity to do so. It has led to a little bit of a slowing of the real estate market but of course, that is relative! It’s still a full on sellers market but without the overheated nature that we all saw in the Spring.
For the first time since April of 2019 we have at least a 1 months supply of homes on the market. For perspective I believe that a balanced market is closer to a 2.5 to 3 months supply. The first 2 weeks or so are critical so get your price and prep right!
Rentals are on fire. There is only a .7 months supply there and rental rates nationally over the last year have risen some 15%!
Housing bubble? Distressed sales? Nope. Only 6 foreclosures and 6 short sales in the entire Northern Virginia region.
Lots of folks are doing renovations to stay in place or prep their homes for the market which is causing price spikes in materials we have all seen plus some unusual recent shortages. Paint in particular. Most Sherwin Williams stores are out of much of their stock. Part of this is supply chain and materials related but I’ve also heard that some manufacturers are hanging onto reserve stock for when prices rise further.
This is fascinating but unsurprising. A survey found that nearly 1 in 3 home sellers have electronic surveillance devices in their homes so that they can see what buyers are saying about their home to be used in potential negotiations. These devices are going beyond ring systems to spy cams. So when you are looking at houses wait until you are back in the car to spill the beans!
Finally some commentary on the eviction moratorium. It ended officially on July 31 and the Supreme Court made it clear that it would view further extensions by the Biden administration as illegal. However the CDC and FHFA have made an end run on the court’s instructions and it looks like there will be a de facto extension until the end of September. Commentary on that will likely follow in a separate post.
It’s a good life.
Chris
