Summer 2020 was one for the record books!
On September 15, 2020 how many active homes were on the Black Hills Multiple Listing System?
How many homes sold in less than 10 days during the summer?
What's happening with new construction?
And what does this mean if you are a Rapid City home seller or home buyer?
Find out in this month's market report!
YouTube Link: https://youtu.be/FZeZ4aCbBTI
What happened to summer? It was here, it was gone, and now it's time for your summer market update report!
I've got numbers scribbled on a page let's do this.
Hey everybody, I'm Tristan with Mindful Living Realty. Welcome to your Rapid City Real Estate Market Report: Summer 2020. Let's take a look at what happened during the summer. What's happening right now. And maybe we'll gander a little bit into the crystal ball see what might happen in the future.
What happened during the summer?
If you ask any real estate agent to describe summer 2020 real estate they'll tell you one thing: busy. Just because there was a pandemic on doesn't mean people weren't out buying and selling homes in the Rapid City area.
Now I did pull some numbers…I know numbers are boring, but I want to make sure that you know what I was talking about and not just spouting stuff like: “Now it's time to sell your house! Now is time to buy your house!”
From June 1 to August 31st in our MLS, which includes not only Rapid City but also certain areas of the Black Hills - I used the whole MLS system. Within our black Hills MLS system there were 920 homes sold during the summer. With an average days of market (DOM) of 39, and a median of 13.
Just to give you an idea what that means: 429 of those homes sold in single-digit days.
We weren't kidding when we were telling your homes are flying off the shelves.
Low inventory, high buyer demand, lots and lots of bidding wars.
One of my first-time homebuyer families lost out on three homes before they finally got the fourth one. My buyers were patient they were perseverant we found them a property got in there right away put in a strong offer with a short time frame for acceptance and got it accepted.
What about now? What's happening now with residential real estate?
Over the past couple days there were 34 homes that were new on the market. 27 under contract and only nine of those were single digits.
So presently, we're seeing the days in market expand just a little bit. But don't let that stop you from making sure you present that offer -that strong offer, right away.
I got into the back end of our Black Hills MLS system. I entered Active and Residential. How many homes do you think popped up?
That's it, 287 active homes in our entire black hills MLS system.
In years past it's been at least double that. So, when we say there's low inventory, there's low inventory.
The other thing that's interesting right now is new construction. Now we're seeing a lot of new construction going on right now new developments. But, with COVID, all the hurricanes, plus all the hail storms in our area, we're seeing materials not only take longer to get here, but also the price going up. New construction homes are going to get more and more expensive and they're also going to take longer to get built.
What’s going to happen the rest of this year?
Of course, the answer really is who knows? But that's no fun let's talk about what we think might happen!
I'm currently working with clients from about 10 different states that are all talking about moving to South Dakota. Now this just happened for me just a few weeks ago. And they're all talking about moving to the area within the next few months or spring of next year.
Add to these people coming in the current low inventory, and as we're getting closer to wintertime when Sellers are saying "Yeah I'll just wait to list till spring"; I don't foresee the market shifting or slowing down anytime soon.
However, I've been wrong before this is a weird election year.
And, hey, it's 2020 who knows what's really going to happen.
What does this mean for you?
If you are a seller you're thinking about selling your home; it is a seller's market. The inventory is low, buyer demand is high. You should be able to get your home sold for a very competitive price very quickly.
However, this also prevents a challenge for you if you want to sell and buy and possibly move up. Number one the home you want to buy probably won't accept the home sale contingency because, why should they? Another buyer will come along without one and just buy out from underneath you. Number two, even though you're getting more money from your home all the rest of the prices have gone out too. So unless you really want to jump from your price to the price of your home to the price of the next home it could be very difficult to really get you to something that's actually an upgrade based on where you want to go.
Buyers - I'm sorry, it's kind of the same thing: patience, persistence, get in the game, play the game, keep putting offers in. Make sure you have an understanding of not only what you want, but also what you need your time frames and what means the most to you sometimes it might simply be "Hey, I just want to get into a house".
Thanks for watching our video today! I hope you liked it.
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We love our area we want to make sure that you love where you live too. Have a great day.