Market Insanity
Unless you are living literally off the grid and have zero access to the world, you know how INSANE this market is right now. Have you seen this TikTok video? It is 100% on point with enough accuracy to make you cry. Buyers are exhausted and emotionally drained after losing out on bidding wars or finding out that lumber has now tripled in cost making their new home unattainable. It's a running joke that, at this point, every home for sale in the MLS should be classified as "auction" because it's rare anything is selling at or below list price.
The flip side of that story is that us agents with homes to sell feel like Charlie in the Chocolate Factory. Winning ticket all around!
How real is it? Normally, I hate buzz words. They are effective but they are all too often overused as clickbait. That being said… here are some that I read every day from industry leaders that are 100% spot on in what we’re experiencing:
“Unprecedented. Historic. Severe imbalance. One of the worst housing shortages in the history of America.”
Where is the light at the end of the tunnel and when is this imbalance going to even out? Locally, it’s been forecasted that we should see a surge of listings in 4-6 months (if not sooner) once the vaccine is rolled out in larger numbers and as life begins to return to a modicum of normalcy. Also, our builders who are holding onto their homes until they are near completion instead of pre-selling them will hopefully be releasing those onto the market giving our inventory-starved areas a little bit of relief and providing more options to potential buyers.
Will it outpace demand? I think everyone in our industry would be shell-shocked to wake up to that reality. We have too many people moving to our area from outside states, an above average percentage of renters and age groups entering the housing market for the first time and still historically low rates.
What will it potentially look like when that happens? Well, instead of sellers receiving 4-25 insane offers, they will likely receive 1-5 more reasonable offers of at list price. Homes will stay on the market more than 4 hours and pricing will start to stabilize as more homes become available and as rates increase closing the gap on what a buyer is able to afford and/or comfortable to pay.
So…what do you do if you have been thinking of selling? I’ll lay it out like I do for my clients:
Do you have a gameplan?
Do you know where you are going?
If you’re unable to find a home to buy right now, are you okay with renting?
If you're building, are you able to afford the potential additional costs of lumber and supplies that may occur during the build process?
Are you comfortable buying a home in the same kind of market you are selling one in (i.e. at a higher price point)?
If we are unable to brainstorm an answer that you are willing to live with…STAY PUT. If we can come up with a suitable solution for your short-term and long-term goals…LIST, LIST, LIST! You may likely never get more for your home in the immediate future than you can right now.
If you are thinking of selling...let's talk ASAP. If you know of colleagues or friends that are thinking of making a move...hook us up! There are more licensed real estate agents in our state than homes for sale. Go with one you trust!