Inventory Is at an All Time Low
2021 is starting off with a BANG! in real estate. Article-after-article and trend-after-trend we are seeing that 2021 is going to be a great year in real estate, but with that comes some challenges…
“…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 as an expert guide along the way.”
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 – so if you are buying, selling, or both – remember that you can do so with confidence! Contact a Warren Agent for information about you market.
Mortgage Rates and Affordability – Why does it matter to you?
According to NAR’s research economist Nadia Evangelou, 30-year fixed mortgage rates increased to 2.79% from 2.65% last week. Buyers should not be discouraged since the inflation is subdued, so if you are thinking about buying now is a good time to begin your search with a Warren Real Estate agent.
Jobs are still a concern, however experts believe that both employment and inflation will pick up later this year. Why are experts so confident? Businesses are re-opening all over the country and the US is making large steps forward in dealing with the pandemic. These events will create market stimulation and will cause an increase in prices. This will increase mortgage rates slightly. NAR is forecasting the 30-year mortgage rate to average 2.9% and 3.0% in the first and second quarter of 2021, respectively.
NAR said that, “Housing demand will remain very strong… households earning $100K can afford to buy more than 60% of homes currently listed for sale nationwide. This translates to nearly 770,000 homes across the country as of November. Respectively, households earning $75K can afford to buy nearly half of the homes that are available for sale.”
In the Finger Lakes, the market is heating up. If you are interested in buying or selling, contact a Warren Real Estate agent today. The mortgage rates and affordability are really at the perfect point for buyers and sellers. This is truly the time to make your buying or selling dreams come true.