How Hot Is The Housing Market?
Well, hot, to put it mildly. The Chief Economist for the National Association of REALTORS, Lawrence Yun, said “We’ve never seen price appreciation of this magnitude” with the median home price from May 2020 to May 2021 increasing nearly 24%, to roughly $350,300. That is quite a statement, and quite a figure.
What Does This Mean For The Market?
What it means is a tremendous amount of activity. Potential homebuyers are looking at more properties in many cases, because sales are happening faster than usual. Sellers are urgently hopping into the market trying to strike while the iron is hot. Real Estate agents are trying to be in multiple places at once. That’s the case in some instances, but in others…
High prices are making some potential buyers take a breather, meaning competition has lightened up a bit in some areas. Low mortgage rates, normally a big incentivizer for home buyers, is not having the usual effect. With home prices below $300,000 being scooped up almost as quickly as they hit the market, buyer fatigue has worn some folks down.
In short, a robust market is driving prices up at a rapid pace and attracting many new buyers and sellers, while also driving others away.
What Does This Mean For Me?
If you are a buyer, it means approach the market with a measure of patience. Homes are out there, but inventory is still not as bountiful as it was pre-2020. With competition lessening there will be more opportunities for you to find your dream home than there were this time last year.
If you are a seller on the other hand, you are probably still in the driver’s seat. Even with less people crowding the buyer market there are still more people looking for homes today than in previous years. If your home falls in that $300,000 range you are definitely going to find multiple bidders, and may find your home going for more than you anticipated which is always a good thing. Taking care of needed repairs and updating areas such as kitchens and bathrooms will only see your profit go higher.
What Does The Future Hold?
June saw new listings up by over 5%, so things are slowly going to get back to normal. 2021 will still be a seller’s market, but it won’t be nearly as lopsided as we’ve seen over the last year. Interest rates are still very low, and many people are going to be trying to take advantage of this over the course of the year.
If you are looking to sell or buy a home call RENOMAX Real Estate at 540-737-5617, or visit https://www.renomaxva.com/. These are interesting times and the market can look overwhelming, but we can help you find the best course of action.
