Homebuyers should expect to be in a multiple-offer situation.
In May, during the pandemic, there were about three offers on each home that sold, up from about two offers in April, according to the May 2020 REALTORS® Confidence Index Survey. The report is based on a survey of more than 4,000 REALTORS®, conducted June 1-10, about their monthly transactions.
REALTORS® reported a higher number of buyer offers, client tours, and listings in May as states began to reopen.
The report also showed a rising number of in-person home tours in May. Forty-five percent of REALTORS® surveyed also reported conducting virtual tours and showings.
Overall, REALTORS® are optimistic about the next three months and expect to see a pickup in business. Forty-three percent of REALTORS® surveyed say they expect stronger buyer traffic in the next three months. That is up significantly from April, when only 25% of REALTORS® said they expected stronger buyer traffic on the horizon.
REALTORS® surveyed also are mostly optimistic about the direction of home prices. They predict home prices to remain stable or increase over the next three months.
“Low mortgage rates and job creation in May are buoying home buying and expectations,” NAR notes on its Economists’ Outlook blog post reporting on the REALTORS® Confidence Index. Mortgage applications for home purchases have been rising since April 17; applications are up 25% on a year-over-year basis, as of June 12.
“Homeowning is now cheaper than renting,” NAR notes in its report. NAR estimates that the median gross rent for vacant units in April 2020 was $1,077. That is slightly higher than an estimated mortgage payment of $1,020 on a home purchased at the median sales price of $286,800 and with a 20% down payment on a 30-year fixed loan.