1. Inventory is at an all-time low
Your home could be extremely valuable due to the low inventory of homes on the market. NAR has reported that inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory-significantly higher than it is today.
Home sales rose in December, and for 2020 as a whole, we saw sales perform at their highest levels since 2006, despite the pandemic. What’s even better is that this momentum is likely to carry into the new year, with more buyers expected to enter the market.”– Lawrence Yun, NAR’s chief economist.
2. Mortgage rates remain at an all-time low
There will come a time when mortgage rates aren’t this low anymore. The low rates have continued to stunt the market and put the leverage into sellers’ hands. This should be taken advantage of as rates remain right around all-time lows. “Although mortgage rates are projected to increase, they will continue to hover near record lows at around 3%,” Yun said.
3. Bidding wars are likely
Buyers have less room to be patient when it comes to deciding on a home. While buying a home is not an easy process, buyers know that inventory and prices are currently in the hands of the seller, so they are more likely to complete the sale at the price you want in a quicker fashion.
Sellers are in the driver’s seat. There are more reasons to sell in 2021 than there ever has been. When there’s a shortage of houses with a strong demand at the same time, the seller is in a great position to negotiate terms in their favor.