The first half of 2021 has been the most unusual six months in memory. We’ve seen the reopening of businesses, kids getting back in school, political division and unprecedented federal and state stimulus propping up the economy. Investors continue purchasing homes at a feverish pace and iBuyers are putting their programs into high gear. The primary residential market has been on fire with home values in some areas up by more than 25% from the same time the year before.
While we are still seeing multiple offers on many newly listed homes, some of the wild and creative terms that buyers were throwing out there this spring have slowed down. Overall the pace of homes being sold is record breaking, but it seems to be coming back down to earth. We would love to see a healthy Seller’s market – a market that would keep inventory limited and days on market very low, but hopefully with a little less craziness than we saw this spring. Here’s three reasons why we think we are heading that way:
1. New Construction is still limited by slow permitting and high material costs. This keeps the number of new homes available low.
2. Rates stay low. Most experts don’t expect rates to go over 4% for at least 12-18 months.
3. On-The-Fence Buyers ready to move. Buyer demand will remain high as the thousands of area buyers that competed and LOST on home bidding wars all spring are still out there and ready to buy!
Contact us today to discuss how these market factors will effect you as a buyer or seller.