Updated: May 20
2020 was a year full of many lows, but the housing market ended up not being one of them. Initially, in the first quarter, home sales came to a complete standstill as everyone went into lockdown.
August, there was a steady uptick in potential buyers and properties listed. Sales skyrocketed despite the ongoing world pandemic and were even the highest they had been since 2006, according to the National Association of Realtors. With the market booming this past year after the initial shutdowns, the anticipation for a depleted market in the near future was high. And just a few months into 2021, that is
becoming the reality for Americans all over the US.
While the demand for homes is still high, the number of homes listed has dropped by nearly 40% since April 2020 alone. So, what happens in a competitive market that is flooded with buyers but very little inventory exists? The prices go up and the hunt for that perfect home intensifies. Since March of this year, home costs have increased by over 11%. This is a supporting indication that 2021 will be defined as a year with low-interest rates and low inventory, ultimately pushing sales prices in an upward trend. It is now no surprise to see buyers come in with cash offers and even go under contract in days, if not hours. “Bidding wars” are becoming more and more common and buyers are also going into the process offering more than listing price right out the gate, making it more difficult for those who do not have the extra savings to do so.
While we are currently in an imbalanced market, many realtors that are facing the current situations daily are hopeful to see more homes hit the market as we make our way into the summer months. As more construction takes place, it is expected to see the market stabilize. This, however, will take time and could very well be 2022 before this shift is felt by buyers all over. Until the sides are balanced, what can buyers do while we remain in a seller’s market? Some helpful tips may be:
Make offer as clean as possible.
Avoid asking for personal property.
Write a personal letter to seller.
Offer above asking if possible.
Put down a stronger Earnest Money Deposit (EMD).
Make a larger down payment in your loan program.
Pay with cash.
If you don’t have one already, please reach out to Southern Tradition Real Estate, 4700 S. Thompson Street, Suite B-101Springdale, AR 72764 (479)-365-2585to find an agent to fit your home buying or selling needs.