Unless you’ve been living under a rock, you’ll have heard about how bananas our market is right now. What’s driving it? When will it change? Today I’ll discuss my answers to these key questions as we compare the March 2021 market numbers to what we saw in the same month last year. If you’re looking to buy or sell in the coming months, these are the numbers you’ll need to know:
Beyond inventory, one of the largest changes we’ve seen year over year is the increase in interest rates. Many buyers think that it’s a good idea to wait for prices to come down, as higher interest rates affect prices. However, the problem with that logic is that you’ll be waiting a while for that to happen.
We’re in a supply and demand industry; since there are fewer homes coming on the market and more leaving it, inventory is going to remain low. How long will it take for inventory to increase and prices to fall? Well, we don’t have a crystal ball, but none of the data suggests any signs of that happening soon.
If you’re thinking of buying, I’d recommend that you act sooner than later so you can lock in a lower interest rate. If you wait a year, that rate could go up even more, which will make homes less affordable, and you’ll wish that you hadn’t waited.
If you’re a seller, this is a dream market. When you list your home, expect a lot of showings and many offers. We recently had a listing that was listed at $769,000; within seven days, we had 67 offers on it and it wound up selling for $106,000 over asking price! Like I said—the market is bananas.
If you have any questions about your specific neighborhood or buying and selling in general, don’t hesitate to reach out to me. I’d be happy to share the data with you to help you make an informed decision about your next real estate transaction.