The housing market has made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates is a major factor in this continued momentum, with average rates hovering at an all-time high low.
According to the latest Reliable Agent Index Survey the la National Association of Agents of Agents (POMEGRANATE), buying demand across the country is incredibly strong. However, that is not the supply side. Vendor traffic just doesn’t last. Here is a page by state:As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale now, record-low inventory creates a mismatch between supply and demand.
NAR also only reported that the actual number of homes currently for sale stands 1.28 million, less than 22% a year ago (1.64 million). Additionally, inventory is always lower 2.3 months supply available at the current sales rate. In a normal market, that number would be 6.0 months inventory – significantly higher than it is today.
What does this mean for buyers and sellers?
Buyers need stay patient in the search process. At the same time they must be prepared act immediately after they find the right home from then on supply wars are more common when so few houses are for sale.
Vendors however, they may not want to wait until spring to put their houses on the market. With such high buyer demand and such low supply, now is the perfect time to sell a house on optimal terms.
The real estate market enters the year like a lion. There is no indication that it will lose that roar, assuming an inventory continues to appear on the market.
Content previously posted in Keep Current Things