As a result of the coronavirus and COVID-19, along with stay-at-home orders and economic difficulties, life for most Americans has irreversibly shifted. Despite the doomsday predictions by the main street media the National and Tulsa Metro area Real estate market remain strong. There is not a shortage of buyers, in fact purchase activity is up 13% from this time last year. According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, purchase activity continued to climb last week, rising 5 percent from the week before. The improvement marks eight consecutive weeks of increases and puts demand for loans to buy homes 13 percent higher than they were last year at the same time.
So, as we enter the busiest of all home buying/selling seasons, what will things look like? To help answer that question, we’ll examine the ways buying a house will be different in the Tulsa Metro area this summer.
1. Supply & Demand
As we enter the summer months and work through the challenges associated with the current health crisis, many are wondering what impact the economic slowdown will have on home prices. Looking at the big picture, supply and demand will give us the clearest idea of what’s to come.
Making our way through the month of June and entering the second half of the year, we face an undersupply of homes on the market. Keep in mind, this undersupply is going to vary by location and by price point. According to the National Association of Realtors (NAR), across the country, we currently have a 4.1 months supply of homes on the market. Historically, 6 months of supply is considered a balanced market. Anything over 6 months is a buyer’s market, meaning prices will depreciate. Anything below 6 months is a seller’s market, where prices appreciate. The graph below shows inventory across the country since 2010 in months supply of homes for sale.
Robert Dietz, Chief Economist for the National Home Builders Association (NAHB) says:
“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt. Estimates vary, but based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”
2. Pre-Approval Will Be Even More Important
When the number of buyers in the housing market outnumbers the number of homes for sale, it’s called a “seller’s market.” The advantage tips toward the seller as low inventory heats up the competition among those searching for a place to call their own. This can create multiple offer scenarios and bidding wars, making it tough for buyers to land their dream homes – unless they stand out from the crowd. Here are three reasons why pre-approval should be your first step in the homebuying process.
Low inventory, like we have today, means homebuyers need every advantage they can get to make a strong impression and close the deal. One of the best ways to get one step ahead of other buyers is to get pre-approved for a mortgage before you make an offer. For one, it shows the sellers you’re serious about buying a home, which is always a plus in your corner.
“[G]etting preapproved before you make an offer on a house is a must. You don’t have to leave home to get preapproved; you can submit an application online or over the phone. And if you’re in a hurry, applying with an online mortgage company can help you speed through the application process.”
Local real estate professionals also have relationships with lenders who can help you through this process, so partnering with a trusted advisor will be key for that introduction. Once you select a lender, you’ll need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”
3. Digital Marketing is Essential
A big way that buying a house will be different in the Tulsa Metro area this summer will be in how houses are shown by sellers and viewed/toured by buyers. A large portion of it is going online and going virtual.
In today’s rapidly changing market, it’s more important than ever to make sure you have a digital game plan and an effective online marketing strategy when selling your house. One of the ways your agent can help with this is to make sure your listing photos and virtual tours stand out from the crowd, truly giving buyers a detailed and thorough view of your home.
So, if you’re ready to move forward, virtual practices may help you win big when you’re ready to sell. While abiding by state and local regulations is a top priority, a real estate agent can help make your sale happen. Agents know exactly what today’s buyers need, and how to put the necessary digital steps in place. For example, according to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s homebuyers said, in order of preference:
In a new era of life, things are shifting quickly, and virtual strategies for sellers may be a great option. Opening your doors up to digital approaches may be game-changing when it comes to selling your house. Let’s connect so you have a trusted real estate professional to help you safely and effectively navigate through all that’s new when it comes to making your next move.
There are in fact more than these 5 major ways that buying a house will be different in Tulsa Metro this summer, but these should help you be prepared for what lies ahead. But one thing has not changed and has become even more critical – and that is the necessity of having a qualified local real estate in your corner.