In a recent survey of RCFE home sellers by Qualtrics, 87% of respondents said they were concerned their home won’t sell because of the pandemic and resulting economic recession. Of the respondents, 51% said they are “seriously worried.” That concern seems reasonable considering the current condition of the economy. The data, however, is showing that RCFE home purchasers are still very active despite the disruptions American families and RCFE owners have experienced this year. There is considerable pent up RCFE buyer demand, and not enough RCFEs on the market to satisfy this growing need.
The latest Existing Home Sales Report, published by the National Association of Realtors (NAR), revealed that 340,000 single-family homes sold in this country last month. These include sales of RCFEs. NAR’s most recent Pending Sales Report (homes going into contract) surpassed last month’s number by over 44%, which far exceeded analysts’ projections of 15%.
While RCFE buyer demand is surging, the number of RCFE listings has fallen to an all-time low. Zelman Associates, in their latest residential real estate report, revealed that housing inventory as a percentage of households has fallen to 1.2%, which is half of the long-term average and lower than any other time in our history. This includes listings of RCFEs, which fell to a trickle during the March to mid-May time period, which have now increased, but are still anemic to this date.
Bidding Wars Heating Up Again
With RCFE buyer demand growing and the supply of available RCFE homes shrinking, RCFE purchasers are again finding themselves needing to outbid other buyers. NAR, in a recent blog post, revealed:
“On average, there were about three offers on an RCFE home that closed in May, up from just about two in April 2020 and in May 2019 (2.3 offers).”
Bidding wars guarantee RCFE homes sell quickly at a price near or even slightly over the listing price. A well-priced RCFE at fair market value will garner considerable attention.
If you’re thinking of selling your RCFE, don’t be concerned with putting your house on the market right now. There’s no better time to sell an item than when demand for it is high and supply is low. It is exactly at that time when you will negotiate your best possible deal.
If we can be of assistance in any way, please do not hesitate to reach out to us. We’ve guided countless sellers and buyers from idea to the closing table. We can help you every step along the way. We are expert, knowledgeable and have considerable market “know how” and will assist you in obtaining top dollar for your RCFE.
If we can be of assistance with your purchase, sale or lease of an RCFE or other property please call us today for your FREE Consultation:
Michelle (949) 397- 4506 & Melvyn (949) 500-3630