Will we see an increase in 2021 inventory levels?
Are we going to see inventory levels go up in 2021? How will this affect the housing market? Hi, I’m Lynea Carver with the Carver Home Team and John L Scott Real Estate. In our 20 years in the industry we’ve never seen inventory levels this low. Ever!!
What does that mean for a seller and a buyer? Lower inventory levels cause home prices to go up because buyers are bidding over the list price. This causes homes to increase at higher levels. So, it’s great for sellers, but makes it much more difficult for buyers. Lately, we’ve seen as many as 15 offers or more on properties, which makes it hard for buyers to have their offer chosen, but it allows sellers to choose the terms of the contract that are most favorable to them.
They are taking factors such as down payment, type of loan, contingencies etc. into consideration when they choose their offer, so buyers are having to come in as strong as possible.
Keep in mind, the median age of an owner occupant is 57. We’ve been told by health professionals that the older you are the more at risk you are with the virus or having very serious complications. Many Americans in this age bracket have waited to list their homes, which is one of the factors that has led to the lack of inventory.
I believe that inventory levels are going to go up once people feel more comfortable listing their home because they aren’t fearful of getting sick. Also, Corelogic predicts the turnover rate, the percent of houses that sell in 2021, to be higher than the 20-year average turnover rate.
I hope this was helpful. Stay tuned for all 4 of the Real Estate predictions for 2021, I’m Lynea Carver with the Carver Home Team. Reach out to us at any time with any questions. We’re here to help. 206-962-0247 or Lynea@lyneacarver.com
And remember, whether you’re buying a home or selling a home, it all starts with a dream. Let’s dream together!