Welcome to our May 2021 real estate market update.

We’re in a booming market, but I always like to put things into perspective. Think back to 12 months ago: We were in lockdown, didn’t know what would happen, the stock market was lurching up and down, we couldn’t find toilet paper, and more. A year later, many people have been vaccinated, the economy is on the mend, and real estate is thriving. A year ago, people were afraid to sell their houses or go looking for homes. Today you can buy all the toilet paper you want, but you can’t find a house.

Active listings have decreased 63% year over year, and we had three times as much inventory two years ago; that was a low inventory market, and now we have much less. Pending sales have risen 133%, closed escrows have climbed 72%, and new homes coming onto the market have declined by 20%. Right now we have 297 pendings and 117 new listings, which is not even close to enough to replace the homes coming off the market. So if you’re considering selling, this is an excellent time to do so.

"Today you can buy all the toilet paper you want, but you can’t find a house."

Amid all this, why are people even trying to buy? First, we have historically low interest rates; people like having a fixed payment when everything else is getting more expensive. Second, if they have money saved, they aren’t making much interest with it sitting in the bank. Third, with the pandemic, many people want to move closer to family. Our market is working for both buyers and sellers these days in a way I’ve never seen.

The little caveat is that we’re seeing more homes not closing and going back on the market. That means that sometimes buyers and sellers aren’t compromising or the buyers are getting cold feet. That hasn’t made a difference in the market yet, but we’re keeping an eye on it. Our associate John Turner just said this to me, and I thought it was a perfect quote: “Most escrows don’t close on the exact terms on which they opened.” So if you go into an escrow thinking everything will be the same at the end of 30 or 90 days, you’ll likely struggle and the deal may not work out; the key word in this market is 'compromise'.

Whether you’re thinking about buying or selling, now is a fantastic time. If you have any questions about the market or real estate in general, call or email us. We look forward to speaking with you soon.