We’re nearing the end of 2021 and let me start off by saying the market shows signs of calming down, but that does not mean it is slowing down.
As we are approaching the holiday season, buyers are becoming fatigued from the summer rush of competition and multiple offer situations. Only those most serious are left to keep searching the market. The number of options is slimming as well. Sellers are still mostly in control of the market, but buyers are no longer submitting to extensive ways in order to obtain an accepted offer, especially for those homes that are overpriced.
During October, homes were on the market for an average of 21 days, a few days higher compared to September with an average 18 days on market.
There were 1,811 houses listed in October, down from the 1,927 homes listed in September. With only 1.5 months of inventory, we are still in a seller’s market with a median list price of $329,900.
The number of actual units sold is only a few below the number of listed homes.
Take a Look Back to 2019
Let’s take a look back to October of 2019 and show you how the market has changed in only two years.
There were 1,784 homes listed with a median listing price of only $269,856 and a 1.7 monthly supply of homes. Compared to today’s market, the number of homes in 2019 is not that different. The median price however has dramatically increased over the last two years.
We were in a sellers market even back then as we had such a low supply of homes.
Why will we ever shift to a buyer’s market?
If you are still hesitant to buy a home now and want to wait “until the market goes back to normal”, you may be waiting a very long time. Year after year we have only seen the market increase along with home prices.
As more and more homes sell at top dollar, it takes only three appraisals to come in and set a new pricing bracket for that community. Experts have said that we will see anywhere from a 5% to 8% increase in prices year after year for the next couple of years.
Although homes are selling for more today, we have to take into consideration that interest rates are lower than ever before. Some rates are going as low as 2.6%! With the lower rates, most people are offered a lower monthly payment for a higher priced home!