The fluff will be removed from the market; what does that mean for you?
A lot of people are saying that because the holidays are right around the corner, they’re not sure if now is the right time to buy or sell or if they’d be better off waiting. Now, before I share my response, remember that real estate doesn’t have a one-size-fits-all approach, so my advice today may or may not apply to your specific situation. That said, you can always reach out to me if you’d like to discuss it in more detail.
Interest rates are currently low, and though we do anticipate an increase in 2021, they’re holding steady for now. Beyond that, there are two key issues at play when it comes to buying and selling during the holidays: inventory and demand.
If you’ve been following my blog, you’ll know that inventory has been super low, which has raised demand. It’s slim pickings out there for buyers, meaning that they’re paying premium prices for properties. That, in turn, means sellers are selling their homes for record prices.
However, 80% of our sellers are also buyers, and like all buyers, they’re having trouble finding properties. Will it get worse? It likely will for the next few weeks until the new year, when inventory rises again.
However, a whole other series of issues come when inventory begins to rise. As I discussed in previous posts, 30% of our current inventory is stale inventory, meaning that it’s either an unmotivated seller who, in their attempt to test out the market, has overpriced their home, or it’s a property that needs a lot of work. As the holiday season approaches, that 30% of homeowners whose homes have been sitting on the market for too long may pull their homes from the market and deal with it next year. That’s why today’s post is titled “Removing the Fluff.” Although inventory is falling, the inventory of sellable homes is actually going to stay right where it is.
Demand is also going to fall, just like the unmotivated sellers. The buyers who don’t have a real need to purchase right now are also going to leave the market in favor of celebrating the holidays.
That means sellers have a great opportunity if they list their homes now. You’ll have less competition from other sellers, and the motivated buyers will still be in the market to search for a home. Demand for individual homes is still very, very high, and we expect that to continue through the new year. You’re sure to get a very good price in our current market.
Keep in mind, though, that not every agent is the same. A great agent can squeeze in an extra 2% to 5% more out of your home than the average agent. Even though the market is hot, don’t list your home with just anyone. Make sure you work with a professional.
For buyers, it’s a great time to consider a purchase. Yes, you’re going to pay a premium for the available properties, but the beauty of it is that you have less competition from other buyers, and interest rates are low. Don’t forget that the people who are still in the market are playing to win, so competition will still be fierce.
All in all, we are in a sweet spot right now where it’s a great time for both buyers and sellers to act.
If you’d like to have a more in-depth conversation about your position in the market or you have any questions, please feel free to reach out to me. I’d love to be your resource.