As the inventory of homes decreases, the values of homes are increasing. The housing market has been surging despite the pandemic and there are simply not enough homes for the amount of people looking to buy. With the inventory being low, home prices are skyrocketing.
There are some speculations that the housing market will start to gain more inventory as 2021 continues. People could start to feel more comfortable putting their houses on the market when initially the pandemic might have halted their plans.
With the instability of the world at the beginning of the pandemic, no one knew how the real estate world would work. Now that we are almost a year into this health crisis, real estate agents have figured out what works and what doesn’t which will make people looking to sell feel more comfortable.
People who have been hit hard financially by the pandemic might be forced to sell to gain more stability. With the pandemic closing business all over, a lot of people have been laid off or simply not able to work enough. With only two stimulus checks and depending strictly on unemployment checks, some people have had no other choice but to sell their home.
The national inventory decreased by 36.4 percent year-over-year, according to Realtor.com as well as the new listing inventory decreased by 11.8 percent. In November 2020, the median list price of homes rose to $335,519 which is 14% higher than the year before.
Low mortgage rates still continue as we are nearing the end of February, in fact, the mortgage rates are a whole point less than the beginning of 2020. Rates still continue to be below 3% for 30-year and 15-year fixed mortgage rates.
Sellers have the ability to increase the selling price of their homes because they know people will bite due to low inventory issues. The price of homes may start to even out as more houses enter the market but that all falls on if the demand balances out between home buyers and the number of houses on the market.