Pending home sales in the U.S. increased 44.3 percent between April and May — a record-setting jump and another positive sign for the real estate market amid the COVID-19 pandemic.
As the pandemic has stretched on, real estate has remained an “essential service” in many areas, which has helped keep the market relatively strong despite obvious challenges with buying and selling a home right now. Kelly House, Plus’s manager of real estate services, noted in a recent Remote Relo Tip Tuesday video that while fewer homes are hitting the market these days, buyers remain very active in their searches.
This means that it’s a seller’s market for those who decide to list, and the May numbers indicate that sellers have found plenty of eager buyers.
It’s not all smooth sailing, of course. The article below notes that the supply of homes is still “extremely low,” and a spike in coronavirus cases over the next few months could slow the market down. Still, positive signs are always welcome.
If you’ve got a corporate home sale program and have relocating employees looking to sell, now would be a good time to do so in most instances, Kelly said in his video. He also warned of a potential “shadow inventory,” or homes that are waiting until various coronavirus-related restrictions are lifted to hit the market. This would put sellers at a disadvantage due to the increased competition all at once.
If you’re looking to revamp your home sale program in any way, now would be a good time for that as well to ensure you’re providing the best support to your relocating employees while the market remains favorable for sellers. To get started, here are six key questions to be asking about your program.
Pending home sales spiked a stunning 44.3% in May compared with April, according to the National Association of Realtors. That is the largest one-month jump in the history of the survey, which dates to 2001. It beat expectations of a 15% gain. Sales were still 5.1% lower compared with May 2019, however. Pending sales measure signed contracts on existing homes, so it shows that buyers were out shopping during the month of May.