THI WEEK’S RECAP
Our team’s weekly perspective on what’s happening in the real estate market. We provide trends, strategies and other information to help you make your real estate dreams come true!
Is right now the right time to sell your home?
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.
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 buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms.
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BOTTOM LINE: 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.
Let’s find your dream home. Together
Salger Properties is a client-focused real estate sales team serving the St. Louis Metro region. Our process promises that we take all of the stress off your plate and do so in a relaxed, no-pressure approach. Let us get you started by providing you with a complete home market analysis and pricing strategy guide. You’ll get expert service with a friendly, professional style.