After a dip in activity for February’s snow storms, we are getting things back on track. However, we just dropped to the lowest Months of Supply level that I’ve ever seen in this area. We are well below replacement levels coming into the market. We’re drastically overselling the supply. Which means it’s getting even harder for buyers to find homes right now.
Here’s our Market Activity for 2021 so far. Notice the dip at the third week of February. That winter storm put a damper on the market that week. But the two blue lines (New Listings and Pendings) as well as the red line (Sold homes) have rebounded here at the end of the month.
And we closed a lot of homes in that last week. So much so that we oversold the number of homes coming into the market for that week. This has left us with only 0.75 Months of Supply in the market. (This means if we had no more homes enter the market, we’d sell through all the available homes in about 3 weeks!)
With the continued demand from Buyers, and a continued lack of homes in the market, I still expect more upward pressure on home prices this year.
Hopefully, December was the bottom for inventory levels (Green line). We’ve gotten a few more since then. Over the last month, the inventory stayed really close to January’s numbers. But, the sale numbers (Blue line) continued upward. The inventory is still far lower than previous years, and I’m expecting sale numbers to continue to outpace previous years.
This is what lead to that very low 0.75 Months of Supply.
Our average sale price jumped all the way up to $306,724. That’s the highest average sale price that I can find, going back 10 years. It stands to reason that’s a record we’ve never seen in NWA!
What it all Means for You
These market forces continue to push prices higher and higher across our region. Understandably, many potential home sellers have decided to stay put because they don’t think they’ll be able to find their next home with so few on the market.
Now, typically you would assume this is great news for home builders. And it is, because they’ve seen a lot of sales coming their way lately. However, lumber prices have skyrocketed over the last several months. That along with higher land prices has forced many builders into charging higher prices to keep their margins safe.
If you’ve been thinking of selling your home, right now is a historically good time to do so. You’ll sell quickly with a high price. But then you run into the problem of finding your next place. And that’s the big issue, the main problem to solve this year.
Remember the “Hidden Homes” Move-Up Program!
The single biggest problem with Real Estate over the last year has been a lack on homes in the market. So many people would love to move into a new home that better suits their needs, but they’re afraid to sell their current home. It’s tough to make that transition if you don’t know what else you’re going to move into.
For this reason, I’ve put together a program to find “Hidden Inventory, Off Market Homes” for my clients.
This is my #1 Strategy to get you and your family out of your current home and into your dream home. Let’s see what we can find together!
Just click here to learn all about the “Hidden Homes” Move-Up Program!