Should homebuyers consider waiting out the hectic housing market? The answer depends on who you ask. Almost two-thirds of June listings resulted in bidding wars, and buyers continue to sweeten their offers by offering vacations and even crypto, but inventory remains low. It’s normal for buyers to wonder if the market is worth their time, and Scott Durkin, president of Douglas Elliman, says agents predict 18 more months of this. Realtor.com’s chief economist says it can be worth it to wait and stand back, but mortgage rates are expected to go up. Market predictions also vary greatly depending on the region, Realtor.com notes.
Regions in which construction is underway on new luxury developments are likely to see an easing in competition, and therefore price acceleration, in the near future. Buyers who want to avoid bidding wars in these areas should consider putting their home search on pause until the local housing supply grows.
“We’re seeing a lot of new construction in the Dallas, Austin, and Houston markets, as well as in South Florida, which is one of the strongest markets right now,” Mr. Durkin said. “They’re able to build faster than they can in northern states, and a lot of inventory is coming in Florida in the next 18 months, but some of that is being absorbed already.”
Historically, Ms. Hale said, the late summer is a good time to buy, particularly in mid-September, with inventory often dropping around the winter holidays. And now, many real estate markets are seeing their inventory grow, which bodes well for buyers with the ability to wait a few months. In fact, only eight of the top- 50 markets tracked by realtor.com are seeing a decline in new listings.
“The active listing count remains low because homes aren’t sitting for long. But if you look at the new listing count, there are areas where more sellers are entering the market, particularly in large cities and across the Midwest,” Ms. Hale said. “Our June data show that cities like Milwaukee, San Jose, Washington, D.C., Phoenix, and Philadelphia are at the stage where they’re seeing new listings grow.”
This rise in inventory could mean a slowdown in price acceleration and listing options, giving buyers good reason to wait. But elsewhere, there are indicators that housing prices will only continue to rise, and the best time for buyers to act may be right now.
“If you were outside New York I would suggest you wait, because my feeling is that as the vaccine becomes more pervasive, the need for people to relocate will settle down,” Ms. Gottlieb said. “But New York City is behaving just the opposite. In the second quarter the market was on fire and it’s now totally exploded, so if you want to buy in Manhattan I would do it now.”
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