Is This the Best Seller’s Market Ever?
The inventory squeeze has left home buyers with fewer options on the market than they’ve seen in decades. While that’s bad news for them, the continuously high demand means it’s one of the best times to be a seller—ever.
“I’ve been selling real estate for 25 years, and this is the strongest seller’s market I have ever seen in my entire real estate career,” David Fogg, a sales associate with Keller Williams Realty World Media Center in Burbank, Calif., told CNBC. “A lot of our sellers are optimistically pricing their homes in today’s market, and I have to say, in most cases, we’re getting the home sold anyway.” He says he recently listed what’s considered an entry-level home in the area—a three-bedroom, two-bath, 1,240-square foot home—for $789,000. The seller received three offers before Fogg held the first open house, which 100 would-be buyers attended.
“It’s very tough. Most of the listings are intentionally listed a little low to get a lot of attention, and it’s not uncommon to get 12 to 16 offers on one property,” says Jilbert Mosessian, a renter in the Burbank area who is looking to buy a home. He says he recently put offers on three homes considerably higher than their listing prices, “and I was told that there were still five people above me and [the seller was] only going to deal with them.”
The inventory of homes for sale decreased by 6.6 percent at the end of March compared to a year ago, according to the National Association of REALTORS®. Unsold housing inventory is at a 3.8-month supply. Most economists consider a balanced market to be a five- to six-month supply. Forty-eight percent of homes in March sold in less than a month.
To better compete, buyers are dropping contingencies and offering more cash down. Real estate professionals also are bracing their clients for potential appraisal issues because in hot markets, homes may appraise below the bid-up sale price.
“I’m talking to the buyers in advance about these problems so that we address the appraisal issues before we go to escrow, and nobody is surprised in three weeks when we get an appraisal that’s on the lower side,” Fogg says.
How to Make the Dream of Homeownership a Reality This Year
If you’re dreaming of buying a home this year, start by connecting with a local real estate professional.
Will Forbearance Plans Lead to a Tsunami of Foreclosures?
With today’s positive equity situation, many homeowners will be able to use a loan modification or refinance to stay in their homes.
Why Right Now May Be the Time to Sell Your House
With high buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms. Why wait until spring?
4 Reasons People Are Buying Homes in 2021
As many of us spend extra time at home, we’re reevaluating what “home” means and what we may need in one going forward.
What Does 2021 Have in Store for Home Values?
Home price appreciation in 2021 will continue to be determined by the imbalance of supply and demand.
Is This the Year to Sell My House?
With so few homes available for buyers to choose from, we’re in a true sellers’ market. If you’re thinking of selling your home, now may be the time!
Why Not to Wait Until Spring to Make a Move
Selling your house before more listings come to the market in the traditionally busy spring market might be your best chance to shine.
3 Must-Do’s When Selling Your House This Year
A real estate professional can help you navigate the selling process while prioritizing these must-do’s. Give us a call today.
3 Reasons to Be Optimistic about Real Estate in 2021
While the economy improves and interest rates remain low, homes are expected to continue appreciating in the coming year.
Did You Outgrow Your Home in 2020?
It may seem hard to imagine that the home you’re in today might not be your forever home. Many needs have changed in 2020 and your home may no longer fit your lifestyle.