The Housing Market & Inventory in 2021

February 2, 2021

Everybody’s loving the low rates-and who wouldn’t?

Current homeowners are refinancing and lowering monthly payments, while first time home buyers are able to afford more house than just two years earlier. But low rates have also steadily increased demand in the market. Anyone looking to purchase a home right now knows that low inventory is creating a tough market for buyers. As inventory dwindles, competition increases and sale prices start to increase quickly.

31% of home owners who would typically be considering selling their homes are holding onto them for longer because of the current economic and financial uncertainty. Close to 40% of current home owners have paused their plans to list their property because they anticipate a higher home sale price if they wait. Others who have had loss of income or temporary unemployment due to Covid-19 are reluctant to sell due to potential income qualification issues for financing a new home.*

Even higher demand is being driven from renters in cities looking to move into more affordable locations, as many positions are now moving to full remote. This unique opportunity has become available to many people in a short period of time, and the market has become flooded with buyers.

While the competition in the market may be fierce right now, there are a few things you can do to increase your chances of winning a deal. First, working with an experienced agent can help give you a leg up and they can negotiate on your behalf. Second, walking into any property you are interested in with a pre-approval prepares you to move quickly if you decide to make an offer. Finally, a letter to the seller can be beneficial in some situations. It can provide a personal touch in a multiple offer scenario in which the offers are similar.

If you aren’t currently working with an agent, and are not yet pre-approved, then reach out to us! We would be happy to set you up with an experienced agent and get your pre-approved so you are prepared when you find the right home.

*According to 2020 Zillow market data

Categories: helpful tips