Mortgage Rates and Affordability January 28, 2021

Record-Low Housing Inventory and What That Means For You!

Inventory Is at an All Time Low

2021 is starting off with a BANG! in real estate. Article-after-article, we are seeing that 2021 is going to be a great year in real estate. It does come with some challenges though.

 

“…mortgage rates that are hovering at historic lows and forecasted by experts to remain favorable throughout the year. One challenge to the housing industry, however, is the lack of homes available for sale today. Last week, the National Association of Realtors (NAR) released their Existing Home Sales Report, which shows that the inventory of homes for sale is currently at an all-time low.”

“Total housing inventory at the end of December totaled 1.07 million units, down 16.4% from November and down 23% from one year ago (1.39 million). Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace, down from 2.3 months in November and down from the 3.0-month figure recorded in December 2019. NAR first began tracking the single-family home supply in 1982.”

 

FOR BUYERS: “Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and know that a shortage in inventory could mean you’ll enter a bidding war. Calculate just how far you’re willing to go to secure a home and lean on your real estate professional…”

 

FOR SELLERS: “Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate the best possible terms.”

 

The 2021 housing market is going to remain strong. If you are buying, selling, or both – you can do so with confidence! Contact a Warren Agent for information about you market. 

 

Source: What Record-Low Housing Inventory Means for You – Keeping Current Matters