Demand for homes continued to outpace supply in the first quarter of 2021. Many buyers found it strenuous to compete in a robust market where houses received multiple offers, often within hours of going on market. It was a wake-up call for many to set realistic expectations and make choices based on their personal needs and desires, rather than market conditions.
Despite some hurdles, including high and still rising lumber costs affecting the price of new construction, buyers remained active. Millennials have been eager to enter the housing market due to increased time spent at home, the desire for more space and privacy, and mortgage rates still hovering near historic lows. Sellers benefitted from the rush as accurately priced homes typically sold quickly and over asking price.
The electronic real estate transactions – in the form of virtual tours, digital mortgage approvals, and virtual closings – has continued to accelerate the speed in which homes are marketed and sold, forcing both buyers and sellers to make quick decisions.
While the listing supply is very tight, there is hope that more inventory will become available over the next year due to optimism over the widespread availability of COVID-19 vaccines and increased new home construction. Sellers who waited throughout the pandemic due to safety concerns are now more willing to consider a move. That’s good news for first-time homebuyers with limited options due to median home prices skyrocketing across the nation.
Scoring a home in today’s climate means learning how to compete against frenzied demand and coming in exceptionally prepared. As homes move quickly, it is more important than ever to have an expert REALTOR® by your side to navigate the market and evaluate all the options you have. Likewise, if you are thinking about selling, you must be prepared for a quick turnaround. You might have to make an interim move if you can’t move into a new home right away. If you have any questions, just Ask McGrew!