Low interest rates have fueled a drastic increase in housing demand for an entire year now and buyers are wondering if this sellers market will ever cool off.
Well, the sellers market, its higher prices and quicker sales are here to stay, for now.
A slight increase in interest rates has discouraged some buyers from entering the market. However, there continues to be a shortage of inventory on the market for buyers to choose from, and sellers are still in high demand. Sellers have the upper hand in the market and see multiple offers within just days of listing in many cases. As a result, buyers submitting multiple offers with no luck are facing burnout and are widening their search area in hopes of finding an affordable home.
All stats below are based on End of Month in March vs April:
Weeks of inventory – 5 weeks vs 2 (Down 60%)
Median days on the market – March: 4 vs April: 5 (Up 20%)
New homes on the market –4,099 vs 6,658 (Up 32%)
Homes sold – 5,169 vs 5,442 (Down 5%)
Inventory in the 10-County Denver Metro fell for the 12th straight month in April. The median days on the market increased from 4 to 5, as sellers keep their homes on the market to encourage multiple offers. Buyers continue to waive their contingencies in an effort to make their offer more attractive to sellers. Median home sale prices have increased by 19% when compared to April 2020.
Weeks of inventory – 4 weeks vs 3 weeks (Down 25%)
Median days on the market – 26 vs 29 (Up 11%)
New homes on the market – 9,625 vs 11,308 (Up 15%)
Homes sold – 9,806 vs 10,198 (Up 4%)
Median home price continues to rise this month, reaching $359,000. With that, 57% of homes in the Phoenix area sold for over list price in April. As a result, many buyers are facing burnout after submitting competitive offers on multiple properties with no luck. It’s more important than ever to have your finances and a strong understanding of which contingencies you’re willing to waive in order to submit a competitive offer.
Weeks of inventory – 3 weeks vs 2.5 weeks (Down 17%)
Median days on the market – 16 vs 14 (Down 6%)
New homes on the market – 4,416 vs 4,709 (Up 6%)
Homes sold – 3,893 vs 4,005 (Up 3%)
Inventory continues to decrease and the market could tighten even more as Apple arrives in Wake County, making this a great time to sell your home. Median sale prices for homes in this area have jumped 13% in the past month. On average, sellers are receiving at least 2.5% above listing price from buyers. If you’re thinking about buying, ensure your finances are in order and you’re able to move quickly once a home becomes available.
Weeks of inventory – Single Family Residence: 2 weeks vs 2 weeks, Condo: 6 weeks vs 3 weeks (Down 50%)
Median days on the market – March: 7 vs April: 7
New homes on the market – 6,049 vs 12,043 (Up 50%)
Homes sold – 7,803 vs 8,791 (up 11%)
This month brings a large increase in homes on the market in the Seattle area, giving buyers more options to choose from but supply compared to buyer demand overall is still low. With that, the median sale price for houses and condos has jumped up 25% since April 2020, but sellers continue to enjoy multiple offers.
Low supply means low competition for sellers. If you are considering selling, know that your home will be one of the few active listings on the market and you have the advantage over buyers, given the limited supply of homes to choose from. You could have the opportunity to pick the best offer from multiple buyers, and choose a closing timeline that works best for you. In order to get the best offer for your home, work with an experienced real estate professional who is an expert in your local market.
Here are a few blogs that might help you as a seller:
- My House Didn’t Appraise for the Purchase Price, What Now?
- What is a Listing Agent and Do You Need One?
- What Fixes are Mandatory in a Home Inspection?
If you are considering buying in the current market conditions, it’s important to know exactly how much you can afford to offer on a home. As you search for a new home determine what compromises you’re willing to make and the flexibility in closing you can offer. You may feel the pressure to pay more as you see the few active listings go under contract. But commit to your budget and only make offers on homes you can afford.
Here are a few blogs that might help you as a buyer:
- What Do You Need to Buy a House?
- Assessed Value vs. Market Value. What’s the Difference?
- How to remove PMI: 3 Options To Consider
Please note, if you buy with us, we split our buyer’s agent commission with you and give you back up to $6,000. If you sell with us, we give you comprehensive, expert service for a low flat fee. Keep in mind, especially if you’re moving or you have friends in other states, that Trelora can help you in Atlanta, Charleston, Charlotte, Denver, Phoenix, Raleigh, Seattle, St. Louis and Tucson. In the meantime, please stay healthy and safe.