Here’s a quick snapshot of our real estate market from this past month.
I feel like a broken record when I say our real estate market has remained strong again this month, but that is the case here in February 2021. Before I get to my update, I first want to give a shout out to all of our physicians and front-line workers. We’ve now got people administering vaccines, which is great news.
Now back to real estate. As we look at this January’s numbers compared to January 2020, our pending sales are about the same. This makes sense after a very strong start in 2020. Closed sales are up 40% to 50%, which is a reflection of how strong December was. Interest rates have dropped from 3.4% to 2.75%, and inventory is about half of what it was at this time last year.
What is the challenge I’m hearing about the most? Sellers who would love to move up or down, but are worried about their subsequent purchase because of the limited inventory. They can’t imagine putting a house up for sale and having nowhere to go. If you’re in a similar situation, we have seven different solutions. One is an extended closing. Buyers are so eager to buy homes in this market, they are willing to wait. They just want to know they have somewhere to go.
The biggest challenge for sellers is finding where to go next.
Here’s another option homebuyers are taking advantage of with these low rates. You can buy an investment property, move into it, buy it with an owner-occupied rate, then sell the primary residence, take all that equity, and be sitting in that house in a position to buy the next home. When that home comes along, you have plenty of time to move in, then find a tenant for your rental property.
Those are just a couple of avenues. If you’d like to learn more or if you have any other real estate questions, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.