The Housing Shortage
Right now, we have a housing shortage. Homes for sale have been in short supply for a while now, but as businesses have adjusted to the pandemic and many workers will be at home for the foreseeable future, there’s been a surge of buyers looking to change their housing situation.
What Does This Mean?
Essentially, more people are competing to buy fewer houses. This imbalance leads to a shortage in housing, which in turn drives up home prices, creates competitive bidding wars, multiple offer scenarios, and means that houses that go up for sale tend to go under contract much faster. For buyers, buckle up, it may get bumpy. It’s not uncommon to see offers above a seller asking price, strategic contract terms, and quick timeframes. It’s likely to be competitive for the foreseeable future until we see more homes come to the market and inventory stabilizes. The good news is, rates have never been better. The average rate for a 30 year loan is now below 3%. Qualified buyers are able to purchase more homes for their money. Upsizing, downsizing, or a change of lifestyle can now mean more favorable financing, too. For sellers, there’s huge upside as more competition means you may get a better offer, if you play your cards right.
If you’re thinking of selling or selling, we wouldn’t be concerned about putting your house on the market right now or jumping into these competitive waters. There’s no better time to sell an item than when demand for it is high and supply is limited. Smart buyers who make intelligent moves and creative offers can pounce on great homes with outstanding interest rates. Today’s landscape is definitely different and we always recommend partnering with a true expert, to navigate the housing shortage.