Will the Summer Market Sizzle?

Traditionally, the onset of summer marks a stagnant period in the real estate industry.  As a rule, holidays, getaways, warm weather and school vacation take center stage, and buying and selling slips into the background.  Recent housing trends, however, indicate the summer market will sizzle this year. Here are some of the reasons the real estate industry will not see a reprieve between Memorial Day and Labor Day in 2013:

Take Note of the Trends - Real estate sales began to surge last October – a direct reflection of last summer’s market activity. The uptick in business has continued for the past 8 months despite record low inventory across the country. In fact, according to Massachusetts Association of Realtors (MAR), more homes were put under agreement in the month of May than in any month since January 2004, when the group began tracking this data. The increase in sales, year-to-date, was 83.6 percent. What’s more, on a month-to-month basis, the number of single-family homes put under agreement was up 58 percent. This red hot activity is not expected to cool anytime soon. According to local sales associates and early activity reports, June promises to be an equally impressive sales period.

Unmet Demands - The strong winter sales flurry and highly competitive spring market are perhaps  the most overt predictors for a hot sales summer. The unrelenting buying interest evident during the past three quarters indicates that buyers, sellers and brokers will not experience the dog days of summer in 2013. High demand, combined with low inventory, has created a surplus of unsuccessful homebuyers still intent on buying their dream home.  Determined and willing to purchase a property, the earnest buyers remain focused on finding a new home and will likely spend their weekends at open houses instead of backyard barbecues. 

Unconventional Buyers  - Another factor promising to impact summer momentum is the changing profile of buyers. In the past, families with school-age children wrapped up their home search in the spring so they could be settled in before the school bells rang and the fall sports season began. Recent client demographics, however, show calendar-challenged families competing with a growing number of young singles and empty nesters for a historically small supply of listings. This new crop of non-traditional buyers are laser-focused on rising prices and low inventory, and as such will continue their search during July and August in hopes that they find a property while rates are still attractive and some families are on vacation.

As school breaks for the summer and people flock to area beaches, there will be very little respite for those looking to buy, sell or broker real estate deals. Market trends, a persistent dearth of inventory and  unrestricted buyers virtually guarantee that this summer real estate season will remain hot, hot, hot.