Simplifying The Market” loading=”lazy” style=”display: block; margin-bottom: 5px; clear: both; max-width: 100%” link_thumbnail=”” srcset=”https://okchomesellers.com/wp-content/uploads/2021/01/20210114-KCM-Share-549×300-1.jpg 549w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/01/13171317/20210114-KCM-Share.jpg 750w” sizes=”(max-width: 549px) 100vw, 549px”>
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:
Simplifying The Market” width=”650″ height=”325″ srcset=”https://okchomesellers.com/wp-content/uploads/2021/01/20210114-MEM-Eng-1.jpg 1000w, https://files.simplifyingthemarket.com/wp-content/uploads/2021/01/13171320/20210114-MEM-Eng-1-600×300.jpg 600w” sizes=”(max-width: 650px) 100vw, 650px”>As the maps show, buyer traffic is high, but vendor traffic is reduced. With so few homes available at the moment, record-low stock is developing a mismatch between demand and supply.
NAR also only reported that the true number of homes currently available stands in 1.28 million, down 22% from one year ago (1.64 million). Additionally, stock is in an all-time reduced with 2.3 months provide available in the current sales rate. In a normal market, that number would be 6.0 weeks of inventory — significantly higher than it is today.
What does this imply for buyers and sellers?
Buyers need to remain patient from the search process. At precisely the exact same time, they need to be prepared to act quickly as soon as they find the right house since bidding wars are more prevalent when so few homes are offered for sale.
Sellers might not wish to wait until spring to set their homes on the current market, however. With this kind of high buyer need and this kind of low supply, now is the best time to sell a home on optimal terms.
Bottom Line
The real estate market is entering the year just like a lion. There’s no indication that it will lose that roar, assuming inventory proceeds to come to market.
This post was originally posted on Simplfy the Market