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Real estate market booms during COVID-19 pandemic

Low supply creating fierce competition among buyers giving sellers top dollar for their homes

ST. LOUIS — The real estate market is making a comeback right now and it's good news for sellers. According to the National Association of Realtors, June saw home sales jump 20.7%. A record rebound after three months of declines during the COVID-19 shutdowns.

Experts credit this to people wanting to upgrade their homes with an office or pool. Mortgage rates also are at record lows.

Inventory was low before the pandemic and that is still the case now, so homes are closing at over-asking prices.

When supply is low and demand is high, competition is fierce. Teacher Sarah Reno knows that first hand. She and her fiance put in offers on four houses before they landed in their dream home in Wentzville.

“Being a first time homebuyer I didn't really know what to expect, but I really wasn't expecting that,” Reno explained.

Kathy Helbig-Strick with Experience Realty Partners said buyers need to be aggressive in a market like this.

“I've got one shot. I've got to make my best offer that first time around, because there is no guarantee that you'll get a counter offer,” she explained.

If you're looking to buy, Helbig-Strick has three tips for you in this market.

  1. Find an experienced realtor you can trust who knows a thing or two about making an offer in a multiple offer situation.
  2. If it’s your dream home, go all in from the start.
  3. Expect the unexpected. Inspections can turn up deal breakers but don't give up. The right house for you will come around.

Helbig-Strick also said economists are not predicting another housing crash. Adding that if you’re looking to stay in a home for 5-7 years, buying is a good investment right now.

You can read about more housing trends on realtor.com.

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