What Does It Mean For The Seller?
The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale is still astonishingly low, sitting at just a 2-month supply (March 2021) at the current sales pace.
Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (See graph below):
What Does It Mean For Buyers?
When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers. Whether that is waiving certain contingencies, above list price, offers you would never have seen before March 2020.
As this happens, home prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, it will likely get a lot of attention from hopeful buyers. This means buyers have to come with their A-Game and can not afford to be picky.
Low-Interest Rates + Low Inventory
Today, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live – and they’re taking action and getting great results from it with appreciation at an all-time high.
Think about it people started working from home and realized hmm this place is small. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.
For The Sellers
For The Buyers
In today’s market, it is more important than ever to have an amazing real estate agent on your side. Interest rates are likely not to be this low again for a very long time but it is up to you to take advantage. Your agent is there to guide you in the right direction and offer advice as to structuring an offer, connecting you with the right people, and making sure your best interest is put ahead of everything. Whether it is your first time or your 10th time purchasing a home there is always something more an agent can do to make sure you are happy.
Bottom Line-
Whether you are thinking about buying or selling the market is still going to bring you benefits. If you are buying you get crazy low-interest rates. If you are selling in most cases you are getting multiple attractive offers which are nice. The best way to make sure you come out on top is to get yourself an experienced professional that is going to be able to work for you and help make sure your best interests are put first. If you are thinking about doing either please reach out I would love to discuss options.