2020 left us all feeling frustrated, overwhelmed, and unsure of what 2021 would bring. Now that we are a month into the new year it's safe to say that things are still a little crazy, especially with the real estate market.
I'd just like to say that this is all my opinion from what I see professionally as a Realtor here in Virginia. I do not have a crystal ball and I do not know what is going to happen this year. These are just my predictions.
What we are seeing now:
With rates still at record lows, buyers want to buy so demand is up. Combine that with the low inventory of houses and you will see that prices are soaring right now. So you may be able to qualify for a little more as a buyer, and you'll need it to get into the home you want. We are seeing 10,15, and 20+ offers on houses within the first 24 hours on the market! Sounds great if you're the seller and the price is getting bid up, but it can also be overwhelming trying to choose the best price, terms & conditions. This is so stressful on buyers; you may be able to afford the house at full asking price, but I've heard of someone offering $100k over asking price and still not getting the deal. It's insane. Can you imagine being a first time home buyer, finding the perfect house, putting in a full price offer as high as you can go, not asking for anything, and then finding out you were outbid. Then imagining it happening over and over until you've seen all the homes in your price point. It's discouraging.
Add that to the list of disappointments 2020 brought everyone.
Then once you do get under contract you have to worry about financing. Loans are taking longer to close because of how busy the market is. And with unemployment still up and businesses having to shut down every day, it is a pretty volatile place to be right now.
What trends I see happening:
What goes up, must come down...I don't think these inflated prices will last. Hopefully more and more sellers will decide this is a great time to sell and make a profit. We should start to see more inventory which will help ease the tight demand. I think the market will hit a point where it will slow down. Prices will start to decrease. The buyers who lost out originally will be able to finally get into a home. Depending on how things go with the US economy & the pandemic, hopefully businesses will be able to open back up and unemployment will go down.
I think that is my hope for the rest of this year: things coming back to a balance.
If you've had a tough year in real estate, you're not alone. If you've had your hopes up for a house and lost out, you're not alone. I see it every single day. If you had a hard year in 2020, you are definitely not alone. All I can say is that I hope this new year brings balance & hope to everyone.
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