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3 Key Datapoints To Know About Q4 Real Estate
By Emilio DiSpirito, Realtor and Radio Show Host, The DiSpirito Team Real Estate Show Newsradio 920 www.DiSpiritoTeam.com
Do you remember where you were when you first heard about the pandemic, record unemployment numbers or the massive civil unrest going on? When this all began, no one thought the housing market had a chance! Some Realtors threw in the towel, collected unemployment benefits and everyone was skeptical!
Despite, some of the greatest challenges of all time, situations, no one could have imagined, rocked the world and yet our housing market hit record high sales prices with the fewest days on market and continues to barrel through 2020 like nothing we have ever seen before!
I guess, the question on most all of our client’s minds who intend to sell their home during the remainder of 2020 are, “how will the elections affect my home sale?” and “will seasonality play a roll in the housing market this year?” These are fantastic questions and luckily for us, we do have a “Crystal ball” called History Books that we can turn to, in order to understand how previous election years and seasonality have affected the real estate market!
Let’s Crunch 3 datapoints that should tell us all we need to know!
- According to a study done by the National Association of Realtors, November, December, January and February, number of home sales are that of 68% in comparison to peak months of May, June, July and August.
- BTIG, a research company stated that off-election years see a decrease of -9.8% in homes sold in November as compared to October.
- Keeping Current Matters, reports that when taking the average of homes sold during an election year from 1969 to 2016, the data indicates a -15% drop in home sale activities during November.
This data may be concerning upon first look; however, we need to keep something in mind, outside of the fact that even COVID-19 did NOT STOP home buyers this year!! That something… well, those somethings are this…
- Simply put, according to Value Penguin, at no other time in history, from 1972, have we had interest rates in the 2’s during an election year.
- According to Forbes, we are looking at the lowest amount of inventory on the market from 2020 to 2021. This means buyers will have fewer homes to choose from.
My hypothesis of the Q4 real estate market is as follows:
The lowest interest rates in history, combined with the fewest homes on the market to choose from equal an unprecedented opportunity for homeowners who wish or need to sell real estate. We are in a perfect storm for home sellers to leverage this unique market and the window is closing. Even when there are fewer buyers out there, there are not enough properties on the market to satisfy the number of buyers who were historically shopping currently.
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If you would have asked me what I wanted to be growing up, little Emilio would have told you “an archeologist” or “an architect” despite the fact that at age 8 I had my first lemonade stand, landscaping business and was recording my first “news show” on my boombox! Well, I never was much good at trigonometry and did could not see myself traveling for months and possibly years at a time, so becoming an architect or archaeologist clearly did not happen!
Fast forward 26 years later and I’m running a team of the finest residential real estate professionals, own a media company and host my very own radio news show about real estate!
In September of 2017, I married my best friend, Jaclynn, and we have two wonderful children, Destinee and Emilio, V. We have 3 dogs, one of which is a rescue and live in lovely Rhode Island. Jaclynn owns a high-end hair salon in addition to an on-location hair and makeup business!
For 7 years straight it seemed that I had put in more hours than the day had to give on my real estate business. 7 days a week, 14 to 16 hour days, without a break! Why? My friends and family did not understand the sheer magnitude of moving parts and services we offer to our clients during a transaction! One slip up or one missed call could mean make or break for someone’s dream home or even a lost deposit!
Running a team of like-minded, highly qualified and capable professionals has allowed me to offer a very streamlined, simplified and efficient approach to the sales process for our clients and allowed me to earn personal time again with my family while not missing a beat for my clients!
When I’m not working, I’m with my family, riding my mountain bike, eating at a number of local restaurants, enjoying live entertainment, hiking, skiing or reading!
Contact: [email protected]