Low Home Inventory
According to experts the real estate market is expected to do well in 2o21 with historically low mortgage rates and abundance of employment. However one challenge is the low inventory in the housing market. This goes for new construction and the resale market. According to the National Association of REALTORS® the total housing inventory at the end of December 2020 totaled 1.07 million units down from 16.4 from November and down 23% from one year ago (1.39 million units). Also unsold inventory sits at an all-time low of just 1.9 months of inventory which is down from 2.3 months of inventory in November.
What Does Low Home Inventory Mean to a Home Buyer
If you are currently a home buyer it's time to be patent in your home search. It make take a while to find the home you love and be ready to move forward quickly. In advance get pre-approved for a home mortgage, be prepared to make a competitive offer and keep in mind the shortage of inventory could mean you will be in a bidding war. New home builders are increasing their efforts to build at a million in December. With a focus on single-family homes.
What Does Low Home Inventory Mean to a Seller
If you are a seller realize that you have the advantage. Where there is low home inventory you the seller are in a better position to negotiate terms. These terms can include the homes sales price, moving date, repairs and other requests from a potential buyer. This is especially true if your home has multiple offers. But don't be unreasonable and understand you will probably have the upper hand.
According to the experts the housing market will remain strong throughout 2021 and know what it means for you if you are buying, selling or doing both. For more information about your particular case contact Allen Deaver of Asset Realty today.