There's Not Enough Homes on the Market
Home sales remain solid as prices begin to level and low rates continue to provide support to the housing market. The housing market has maintained a healthy sales pace above pre-pandemic levels from 2020’s decline in sales. While the market has slowed down in recent months, 2021 has outpaced last year’s sales thus far. Studies show it's likely to continue through the end of the year. Something we have consistently discussed is the supply-demand imbalance, and this trend is expected to continue into early 2022. This imbalance has continued to heat the market and send prices to an unrealistic level, with many buyers offering sales bids that are higher than the asking price. Throughout October, market competition remained higher but was less intense than it had originally been in the previous months.
The housing market remains extremely competitive as demand continues to increase, and it is determined that these lightning-fast market conditions will not disappear any time soon. There just are not enough homes listed to satisfy the demand from buyers.
In the Upper Cumberland, inventory is up compared to last year. If you’re planning to buy, now is the time to do so! In a previous blog, we had mentioned purchasing a home during the holiday season and how you will benefit from doing so. With inventory increasing, it allows potential buyers to purchase their dream home at a ‘lower than normal' price! Although inventory seems to be up from last year, you still have to acknowledge that inventory is still limited. Homes are flying off the shelves in record time despite the increase in prices.
Tight inventory and low mortgage rates, similar to national housing market trends, are fueling the rise in the Upper Cumberland. Buying a home is considered to be a tricky business in today’s market, but with interest rates being so low, it would be absurd to not think about buying a home! In the Upper Cumberland, prices are up 27% year-over-year, but waiting will cost you more money. As stated before, inventory is limited and you will need to focus more on what you need rather than what is desired. If you are serious about buying a home, whether it be the first or last, you may need to push some ‘wants’ and ‘desires’ to the side. You may not find the home you have always dreamed of, but you can certainly find a house to turn into the perfect home.
The housing market is showing signs of normalization, as sellers continue to become more comfortable when entering the market. While interest rates remain favorable and new listings continue to become available, buyers will begin to be more optimistic about buying. The UC housing market is shaping up to continue the trend of the past year as one of the hottest markets the Upper Cumberland has experienced, which will bring home sales down slightly in early 2022 and continue to normalize throughout next year.
Is it a good time to sell?
The easy answer to this would be, yes! We are currently working in a seller’s market, and home values are continuously rising within our area, making it one of the best times to sell!
Is it a good time to buy?
Most of the population would say ‘no.’ Although housing prices are on the rise, mortgage rates will eventually increase, which can put most potential buyers at a loss. So, if you are looking to buy, now is the time to do it. Check out our past blog posts for more information!