SPRING INTO ACTION 🌱
Happy June to everyone! The theme of the month is ‘spring into action’. Working in a marketplace with extremely low inventory and high demand takes both patience and fast, decisive action. Agents must be ready to schedule viewings for their clients the day a home hits the market and buyers must be ready to make a compelling offer the same day. In the current market, plenty of homes are selling in-house without ever entering the market. Being ready to spring into action refers not only to the swiftness of touring homes and contacting clients, but to the way the entire transaction is steered from start to finish.
So let’s break down the data and see what it means to be in a strong seller’s market. Home sales are up 7% from last month and 36% from May of 2020. Homes are selling on average in 44 days. Average listed price for homes sold in May was $586,892, while average price of homes sold was $589,579. This means homes were selling on average for 100.46% of their asking price! If we take a look at the current absorption rate for Santa Fe’s Residential real estate market, we get a good idea of where we are with home purchases and how much inventory we have on the market. We saw 297 residential home sales in May which works out to about 9.58 sales a day. Thus if no new inventory got listed onto the market (446 listings currently active), homes would run out in about 6.6 weeks. This is considered a very hot market. Homes are selling extremely fast and for more money.
On a National scale, residential property sales have dropped slightly from the past few months, however are up 33.9% from April of last year (May’s numbers are not yet in) and the average home price in April was $408,800. Manchester-Nashua, NH is currently the hottest housing market in the country with half of their homes selling in under 10 days.
Fannie Mae has decreased their housing sales forecast for 2021 based on mortgage rates creeping up. On the subject of rates, here’s the latest survey of the nation’s largest mortgage lenders as of Tuesday, June 01, 2021 according to Bankrate. The benchmark 30-year fixed mortgage rate is 3.100% with an APR of 3.310%. The average 15-year fixed mortgage rate is 2.380% with an APR of 2.660%. The 5/1 adjustable-rate mortgage (ARM) rate is 3.150% with an APR of 4.000%.
And finally, keeping people safe is a top priority right now, and the National Association of Realtors (NAR) as well as the New Mexico Real Estate Commission have adapted the process for buying or selling a home to accommodate new health orders. Matterport 3D virtual tours have been crucial for out-of-state buyers who are now able to virtually tour a home and see direct renderings of floor plans via this new platform. Zoom meetings/consultations, and live stream open houses are other ways real estate practices have pivoted. If a showing is done in-person, face masks, gloves, and sanitary wipes are utilized and signing certain COVID forms are required for COVID tracking purposes. Real Estate has been up there with some of the fastest sectors to shift to a new adjusted way of commerce.
BY JASMINE SAGE - ASSOCIATE BROKER AT KELLER WILLIAMS