Are we going to see inventory levels go up in 2021 and how will this affect the market?In my over seven years in the industry, I have never seen inventory this low, ever. What does this mean for a
Real Estate Predictions in 2021, #4
Dated: April 8 2021
Are we going to see inventory levels go up in 2021 and how will this affect the market?
In my over seven years in the industry, I have never seen inventory this low, ever. What does this mean for a seller and a buyer? Low inventory levels cause home prices to go up because buyers are sometimes bidding over the list price. This causes homes to increase in value at higher levels. So while it's great for sellers, it makes it much more difficult for buyers.
Lately, I've had as many as five offers or more on properties that I've listed. It makes it hard for buyers to have their offer chosen but allows sellers to choose the terms of the contract that are most favorable to them. They are reviewing factors such as down payment, type of loan, contingencies, et cetera, when they choose their offer. So buyers are having to come in as strong as possible with their offers.
However, the median age of an owner occupant is about 57 years of age. We've been told by health professionals that old, the older you are, the more at risk you are with a virus or having very serious complications. So many older Americans have waited to list their homes. And this is one of the factors that has led to the lack of inventory. So I believe that inventory levels are going to go up once people feel more comfortable listing their home because they aren't as fearful of getting sick.
Also, CoreLogic predicts the turnover rate which is the percent of houses that sell in 2021, to be higher than the 20 year average turnover rate. I hope this was helpful. Be sure to search my website at laurie.eresuccess.com for all four real estate predictions in 2021. Reach out to me at any time for anything as I am always here to help. And remember when you do what you love, people love what you do. Have a great day.
I am a full-time professional Realtor providing outstanding service to the SW Florida community. I facilitate your real estate goals in the luxury, new construction, vacation and mid-range markets. ....