The housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time lows.
According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. That’s not the case, however, on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand.
NAR also just reported that the actual number of homes currently for sale stands at 1.28 million, down 22% from one year ago (1.64 million). Additionally, inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory – significantly higher than it is today.
What does this mean for buyers and sellers?
Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since bidding wars are more common when so few houses are available for sale.
Sellers may not want to wait until spring to put their houses on the market, though. With such high buyerdemand and such a low supply, now is the perfect time to sell a house on optimal terms.
The real estate market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.
BCS PROPERTIES is hosting a COMMUNITY SHRED DAY on March 27, 2021 between 9am and 1pm at 9560 FM 830 (across the street from Panorama). Due to COVID we cancelled this day last year and hope to see you. It will be strictly a drop off where you will drive up and hand your shredding to the attendant with the shred company. You will be asked to wait until your shredding has been taken before leaving. Shredding will take place on site!
WHY SHRED PERSONAL DOCUMENTS? Rifling through trash cans for personal information is on the rise and is a common tactic of identity thieves. Shred sensitive materials to minimize your risk. Before discarding them, cut up expired credit and identification cards, bank and credit card statement you no longer need, charge receipts with your account information insurance forms, physician bills and the like.
We will only be offering paper shredding this year. No small electronic destruction!
Are you thinking of selling your home and worried about the timing? Now is the perfect time to sell real estate! Here’s why:
Our market is currently a seller’s market. A seller’s market exists when buyer demand is higher than inventory available. Historically low rates have qualified buyers searching for homes. Lower rates, and thus lower payments, means buyers can qualify for more than they could previously. Lower payments make buyers more comfortable making those payments, so the demand to purchase property is high. Many buyers are entering the market for the first time, yet many others are seeking investments and second homes like never before.
What does this mean for potential sellers entering the market? It means you can get top dollar for your home this fall! Housing inventory is down, as many sellers have put off listing during the pandemic. Buyer demand is driving home and land prices up. In our area, most homes are receiving 3-5 offers in record time. If your home is priced and presented right, it will sell and often at or above list. That doesn’t mean homes will sell for any price you choose, it must still appraise for contract price. However, it does mean that your time on the market can be greatly reduced. The expectation is that this trend will continue through the end of the year as buyers seek to close by the end of the year. If you’d like tips on how we can help you sell during these trying times, you can read more here!
Currently in our local market, we are seeing that historically low interest rates are driving buyer demand, while inventory of listings is down.
What does that mean to you?
For the buyers: Houses are selling quickly, competition among buyers is causing multiple offer situations on many properties, and prices are rising. Low rates are making buying a home possible for the first time for many consumers, and allowing dreams of second homes and vacation properties to come true for many others. Now is a prime time to buy a home, and if you find a home your in love with, act quickly because chances are someone else has their eye on it too.
For the sellers : Inventory is down as many homeowners are holding out listing their home at this time. Our area does not have the months of inventory that we had even a year ago. Sellers who list their homes are experiencing positive results. Buyers demand is up, and prices are increasing accordingly. It is a seller’s market at this time.
CLICK the link above to watch the Houston Association of Realtor’s July 2020 market Report for the greater Lake Conroe Area.
Lake Conroe Area July 2020 Real Estate market report