Are you worried that our real estate market is headed for a slow down? It comes as no surprise that our real estate market is on fire right now! It’s pretty much what everyone is talking about… well at least in my world 😉 So I guess the question is why is the market so hot? Think about it this way… During financial turbulence real estate provides a safe place for investors to put their money. It’s a tangible asset that’s a limited resource and offers great protection against inflation. So even though we’ve seen such massive price appreciation this year we firmly believe that this hot real estate market isn’t going anywhere anytime soon. I’ve put together some information to show you why a slow down isn’t as likely as some may think it is.
Available Inventory
If we compare inventory levels to this same period last year, we are down by a whopping 64%! And our sales are up 11% compared to last year as well. This will continue to drive market prices up over time. These 2 factors have caused our median sales price to increase over 17% YoY.
The Market Will Change This Summer
More inventory will soon arrive on the market for various reasons. The biggest reason is the massive roll-out of vaccines. This will make people more comfortable having potential buyers enter their homes, as well as more likely to make a move to a new home. This includes our biggest demographic; baby boomers! The revival of the economy will also bring with it more purchasing power through job opportunities and greater job stability. People may also be required to relocate for new work.
Shadow Inventory
While there is a forbearance on foreclosures and evictions at the moment, this will be lifted in the near future. The people who have claimed mortgage forbearance will have the chance to either continue with their current mortgage… or sell and payoff the missed mortgage payments. I actually think people who have claimed mortgage forbearance are less likely to sell due to the fact that they would have to makeup for those missed payments.
Seller Advice
It’s very important to take advantage of the market conditions right now. Buyers are willing to pay a premium for a house that’s ready to move-in, that doesn’t require any work or upgrading. They would rather take a loan for the property rather than buying a fixer-upper and having to spend money out of their pocket for remodeling. I’d strongly suggest getting your property in top condition for this. We have some great programs here at True Local Realty Group where we will front you the capital for all the required renovation work, be it flooring, counter tops, or anything in-between!
Buyer Advice
Right now it’s more important than ever to have a good realtor out there looking for off-market homes for you. We just closed an off market property for our amazing clients who were having a hard time finding what they wanted on the open market. We went after properties within out brokerage that had not hit the market yet and were able to find a perfect match. We also directly target homeowners in the neighborhood our buyers are interested in, we send mailers, make calls and even door-to-door inquiries. So if you haven’t had much success finding your property on the open market, perhaps widen your range by including off market homes!
We hope you enjoyed this article!
If you ever have any questions at all… please reach out to us!
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