Will the Housing Market Maintain Its Momentum?

Last week’s Existing Home Sales Report from the National Association of Realtors (NAR) shows sales have dropped 3.7% compared to the month before. This is the second consecutive month that sales have slumped. Some see this as evidence that the red- hot real estate market may be cooling. However, there could also be a simple explanation as to why existing homes sales have slowed- there are not enough homes to buy. There are currently 410,000 fewer single family homes availed than there were at this time last year.

Lawrence Yun, Chief Economist at NAR, explains in the report:

“The sales for March would have been measurably higher, had there been more inventory, Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

Yun’s insight was supported the next day when the Census Bureau released its Monthly New residential Sales Report. It shows that newly constructed home sales are up by 20.7% over the previous month.

Buyer demand remains strong. With more of the adult population becoming vaccinated and job creation data showing encouraging signs, existing- home inventory is expected to grown in the coming months.

What will this bean for homes sales going forward?

Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) have all forecasted that total home sales (exist homes and new constriction ) will continue their momentum both this year and next. Here’s a graph showing those projections:

Bottom Line

Living through a pandemic has caused many to re-evaluate the importance of home and the value of homeownership. The residential real estate market will benefit from both as we move forward.

February 2021 Market Activity

Check out market activity from February!

While there is a decrease from previous years in New Listings, the number of pending sales is up by 51.6% compared to the previous year and sold sales is increased by 35.2%.
Looking at this February compared to past years, the number of condos/TIC/coop on the market has decreased by 16.7%. If you thinking of selling, now could be the time with a decreased number of condos on the market.
The number of pending condo/TIC/coop sales has skyrocketed this February compared to previous years, explained by the current hot real estate market.
The number of sold listings was increased for February, again explainable by the increased market activity in recent months

The real estate market, specifically focusing with condos, tic, and co-ops for February continues to be hot. In the past few months, the market has seen much increased activity with the number of pending and sold sales. If you are considering buying or selling your condo or home, there is no better time than now! Feel free to reach out to discuss the current market, or for any advice!

Sources: San Francisco Association of Realtors

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Where Have all the Houses Gone?

In today’s housing market, it seems harder than ever to find a home to buy. Before the health crisis hit us a year ago, there was already a shortage of homes for sale. When many homeowners delayed their plans to sell at the same time that more buyers aimed to take advantage of recording- low mortgage rates and purchases a home, housing inventor dropped even further. Experts consider this to be the biggest challenge facing an otherwise hot market whole buyers continue to compete for homes. As Danielle Hale, Chief Economist at realtor.com explains:

“With buyers active in the market and seller participation lagging, homes are selling quickly and the total number available for sale at any point in time continues to drop lower. In January as a whole, the number of for sale homes dropped below 600,000.

Every month, realtor.com releases new data showing the year- over-year change in inventory of existing homes for sale. As you can see in the map below, nationwide, inventory is 42.6% lower than it was at this time last year:

Where Have All the Houses Gone? | MyKCM

Does this mean houses aren’t being put on the market for sale?

Not exactly. While there are fewer existing homes being listed right now, many homes are simply selling faster than they’re being counted as currently inventory. The market is that competitive! It’s like when everyone was trying to find toilet paper to buy last spring and it was flying off the shelves faster than it could be stocked in the stores. That’s what’s happening in the housing market: homes are being listed for sale, but not at a rate that can keep up with heavy demand from competitive buyers.

In the same realtor.com report, Hale explains:

“Time on the market was 10 days faster than last year meaning that buyers still have to make decisions quickly in order to be successful. Today’s buyers have many tools to help them do that, including the ability to be notified as soon as homes meeting their search criteria hit the market. By tailoring search and notifications to the homes that are a solid match, buyers can act quickly and compete successfully in this faster- paced housing market.”

The Good News for Homeowners

The health crisis has been a major reason why potential sellers have held off this long, but as vaccines been more widely available, homeowners will start making their moves. Ali Wolf, Chief Economist at Zonda, confirms:

“Some people will feel comfortable listing their home during the first half of 2021. Others will want to wait until the vaccines are widely distributed.”

With more homeowners getting ready to sell later this year, putting your house on the market sooner rather than later is the best way to make sure your listings shines brighter than the rest.

When you’re ready to sell your house, you’ll likely want to sell as quickly as possible, for the best price, and with little to no hassle. If you’re looking for these selling conditions, you’ll find them in today’s market. When demand is high and inventory is low, sellers have the ability to create optimal terms and timelines for the sale, making now an exceptional time to move.

Bottom Line

Today’s housing market is a big win for sellers, but these conditions won’t last forever. If you’re in a position to sell your house now, you may not want to wait for your neighbors to do the same. Let’s connect to discuss how to sell your house safely so you’re able to benefit from today’s high demand and low inventory.