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Nearly 90% of Inventory Sold in Less Than a Month in April, NAR Reports

By: Kelly Leighton on in

Eighty-eight percent of properties sold in less than a month, with the average home lasting on the market for 17 days in April, the National Association of Realtors® Confidence Index Survey for April, which surveys NAR members, found.

This is an increase of 32% year over year, and homes lasted 10 days less on the market compared to April 2020. Each home had five offers on average and 53% of those offers were above listing price. And most Realtors® expect this trend to continue.

Home prices are expected to jump 6% year to year across the country, the report found. In Pennsylvania, Realtors® predicted home prices would go up 4 to 6%, with buyer traffic remaining strong. Additionally, seller traffic is expected to remain stable.

Cash sales represented 25% of all transactions, compared to just 15% a year ago. Additionally, first-time buyers decreased, representing 31% of buyers, compared to 36% a year prior. Nearly three-quarters of first-time buyers put down less than a 20% down payment.

With homes moving so quickly, the report found that 10% of buyers purchased their home after only a virtual showing, open house or tour.

There is no doubt the pandemic has influenced many people’s homebuying choices. Eighty-five percent of homebuyers bought a home in the suburban, small town, rural or resort area and 60% of Realtors® reported they have seen an increase in buyers looking for work-from-home features in a home, like extra rooms for a home office or more space in general.

However, there are hiccups in sales, as Realtors® know. The most common issues for delayed and terminated contracts during this time related to obtaining financing, appraisal issues and home inspection or environmental issues.

Love Letters: Full of Risk or Reward?

When the market gets hot, buyers focus on what they can put in an offer package that someone else cannot. That leads to considering writing what some people call a love letter, a letter drafted by the buyer to the seller explaining why they think they are the right buyer for the property. The love letter has a lot of different potential issues, which can vary depending on what side of the deal someone is on.

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Bidding Wars Heat up Across Pennsylvania

“The lack of inventory has created a very competitive market in our area, which is typically a pretty stable area,” said Central Susquehanna Valley Board of Realtors® President Aimee Buehner. “Sellers must know that there will be a great deal of activity and the possibility of considering multiple good offers, and buyers must know that it is prudent to be timely and sometimes aggressive in seeing properties and making offers, and often there is a need to set out within hours of a property being listed.”

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