Just about everyone searching for a home this year is asking the same question:
Will more homes come on the market?
Prospective buyers have been dealing with low inventory for a year. At the start of 2021, homes listed for sale reached a new low – the lowest amount of inventory since the National Association of Realtors started tracking it in 1982. The map below shows that nationwide, inventory is 42.6% lower than it was last year, and across Connecticut, inventory is 36% lower.
Does this mean homes are being listed for sale?
Inventory takes a couple of factors into account: the number of properties being listed for sale, and how long those properties are staying on the market. For the past year, the market has been extremely competitive for buyers.
While there have been fewer homes listed for sale, they are also selling faster than they have in years past. This means some homes sell before they are counted as current inventory because the demand from buyers is so high.
Will we see more homes come to the market in 2021?
Good news for buyers: experts predict that as 2021 continues, we will see more properties coming to the market. Here are three reasons experts predict more inventory this year:
Homeowners Who Put Plans on Hold
Due to the health pandemic, many homeowners held off on their plans of selling. Entering 2021, people are feeling more comfortable with home showings and their financial situation.
“Fortunately for would-be homebuyers, we expect sellers to return to the market as we see improvement in the economy and progress against the coronavirus.”Danielle Hale, Chief Economist at realtor.com
New Construction on the Rise
Homebuilders understand there is a limited supply of homes, and they are building more single-family homes across the country. Current homeowners who are looking to move up to their dream home are turning toward new developments, which opens up their current home to buyers.
Homeowners who Must Sell
Experts do not predict to see a large increase in foreclosures like we saw after the 2008 housing crash. However, we know that many people have been financially impacted. For some, the best option will be to sell in order to cash in on the equity they gained over the past year.
“Given the huge price gains recently, I don’t think many homes will have to go to foreclosure…I think homes will just be sold, and there will be cash left over for the seller, even in a distressed situation. So that’s a bit of a silver lining in that we don’t expect a massive sale of distressed properties.”Lawrence Yun, Chief Economist at NAR.
Right now, the housing supply remains low, so if you have been thinking about selling, it is an excellent time to make the move.
Questions about buying or selling in today’s market?