The real estate market is expected to continue its momentum in 2021 with 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 available homes. 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. The report explains:

“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.”
(See graph below):

If You’re a Buyer:

Be patient during your home search. It may take time to find a home you love. Once you do, however, it is critical to be prepared to spring into action.   Clarity and preparation are critical and include getting pre-approved for a mortgage, being prepared to make a competitive offer from the start, and knowing that a shortage in inventory could mean you’ll be competing with multiple offers.

If You’re a Seller:

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. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to request more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.

 If you are considering purchasing, selling, or both in 2021, reach out.  I welcome the opportunity to put my resources to work for you and lead you to your next chapter.