Americans are rethinking how they live after spending more time at home during the pandemic.
According to a report from the National Association of Realtors, July marked the third consecutive month of growth with pending home sales up 5.9% compared to June.
While there doesn’t appear to be any shortage of potential buyers in Knoxville, realtor Laurel Strozier said the inventory is low, meaning houses are snatched up at prices above their listing nearly as soon as they hit the market.
“Earlier in the year, right around when COVID hit, a lot of sellers either pulled their house off the market or decided not to sell. So, it's just created an even more extreme inventory shortage. Also, the interest rates have gone down, which has caused it to be a really good deal to buy a house right now, so you have even more buyers interested and even fewer sellers selling. It just really has created a rat race, basically, during these past few months,” Strozier said.
When Cindy and Justin Dunlap began their search for a home in Fountain City this summer, they were prepared for a roller coaster.
After visiting several houses and getting out-bid on one, they came across the perfect home.
“We pulled into the driveway, and I was like ‘yeah, this feels good,’ Cindy Dunlap recalled. They didn’t have time to waste, so they put in an above-asking offer the first day the house was listed and can now call it, ‘home sweet home.’
“It was a fun experience. I don’t want to do it again, but it was fun” Justin Dunlap laughed.
Strozier said she encourages all her clients, included the Dunlaps, to show up to a showing with their finances in order and prepared to make an offer on the spot.
“You want to go see the house, essentially, as soon as it goes on the market. Either the same day or the next day,” Strozier said. “You might be up against 10 or 15 other offers.”
At a glance, it may seem discouraging to dive into the competitive market, but Strozier said the current low-interest rates make it a good time to buy a house.
“You might be paying a little extra because there is so much competition and that monthly payment might be offset by the low-interest rate. So, really, it’s not a bad time to buy a house, even if it is a seller’s market,” Strozier said.
The National Association of Realtors reports similar trends of low inventory and high interest from potential buyers in other parts of the country as well.