Low Housing Inventory and What That Means for You

Despite going through a pandemic and all the economic hardships that have come along with it, the real estate market has fared extremely well and is trending to continue to do well in 2021. Mortgage rates are hovering at historic lows and are expected to stay low throughout the year.

Great low mortgage rates, booming market, that means lots to choose from, right? Wrong. The National Association of Realtors (NAR) has released their Existing Home Sales Report, which shows that the inventory of homes for sale is currently at an all-time low.

So as a buyer what does that mean for you? Well to put it simply it may take you longer to find a home that you love. Also, that once you do, you need to be ready to but in a bid. This may sound stressful but don’t worry there are a few things that you can do to get ahead of the curve. First and most importantly, get pre-approved for a mortgage. That way when you find a home you love you can make an offer right away.

If you’re a seller this puts you in a very good position. Low inventory and high demand means you are in a good position to get what you want and more out of the sale of your home. Whether it’s a certain moving date that you want, price, repairs, etc. you’ll be able to negotiate more from a potential buyer.

The big question, is this what we should expect for the rest of 2021? In short, no. More inventory is likely headed to the market soon and that is mostly due to homebuilders and construction companies putting up more single-family homes than we have seen in years past.

Regardless the housing market is going to remain strong so be sure to educate yourself and know what that means for you!