I report on our local real estate market each week and this year, it's been an interesting study! Inventory is seasonal and winter is traditionally the slowest time of the year. We're used to that and understand that the holidays and weather play a role but...this year is different! Inventory is at an all time low and it looks like this trend will continue for the next few months. So what's going on at the local, state and national level?
The COVID fueled desire to nest and own a home has unleashed the largest buying audience - millennials - to buy instead of rent after years of holding back.
Empty nesters seeking smaller homes are competing with first time buyers for smaller homes.
COVID-fueled migration from more expensive areas to cheaper areas of the US has driven prices up in those areas with increased demand AND buyers comfortable paying much more than locals.
Vast new wealth created from rapidly rising equity markets, crypto speculation, IPO's, inheritance, wealth transfer, etc has created a huge new pool of buyers, many armed with cash.
The US has been under-building by millions for over a decade.
Most builders have focused more of their efforts on more expensive, more profitable homes.
Low interest rates created cheap money - and borrowing - has allowed people to pay more and fuel excessive price escalation in areas causing huge demand.
Institutional investors and i-buyers are competing with 'regular' home buyers further depleting inventory.
Wealthier buyers buying multiple homes. One person owning 3 homes equates to two fewer homes for other buyers to buy.
We have lots of buyers waiting in the wings so fingers crossed that our tight market will start loosening up. So....if you have been thinking about selling, now might be the perfect time. It's a seller's market!