Here’s why there are so many buyers in our real estate market lately.

Why are we seeing so many homebuyers flooding the marketplace? We’re currently seeing about 10 times more buyers than sellers in our real estate market, and prices are being driven up way past asking price. This has been happening for about six months, and we don’t expect it to end anytime soon. There are three main reasons we’ve seen such a huge change in supply and demand:

1. Affordability. Right now it’s more affordable to purchase a home and carry a monthly payment than it is to rent a house. When you combine that affordability with the fact that you’re building wealth in your own property—not a landlord’s—buying becomes more attractive. We’re seeing more young buyers in the market than ever before; millennials make up 36% of the buyers these days. With a new surge of buyers and interest rates in the low 3s or sometimes high 2s, purchasing a home becomes the best choice.

“This is the best time to make a move.”

2. Low inventory. Many sellers aren’t moving, so a slew of buyers are fighting for very few houses. Due to the pandemic, tons of homeowners are finding that the property they own isn’t the right fit; we’ve seen an increase in divorces and people relocating within the community. This is a major factor I discuss with my clients: If this is the new normal, where we’ll be working from home and kids will be learning from home, what do you need to have in your next house? A lot of people are realizing they need an office, a larger kitchen, space for their kids to do schoolwork, a bigger backyard, and more.

Plenty of homeowners in our market are just moving down the street to get what they want and either improve their payments or get more house for the same payment. We expect these trends to continue throughout the rest of 2021; no data suggests buyer demand will let up in the near future.

3. Appreciation. Since we have tilted supply and demand, prices are growing—they’ve appreciated about 10% in the last 12 months, which is the most we’ve seen in the past 10 years. This should also stay constant in our marketplace for the foreseeable future because of supply and demand. If the market appreciates another 10% this year but reduces to a more common market next year, buyers will get the most affordable properties now. However, if we see rates climb to 4% or 5%, home appreciation will slow.

This is the best time to make a move. Prices will rise and rates will stay low. All this is why we’re seeing so many buyers in the market today.

As always, if you have any questions or would like to discuss your strategy for entering the marketplace, feel free to reach out to us. Call, text, or email; it would be a pleasure to speak with you.