The Latest Breakdown of This Hot Market
What’s going on in our crazy real estate market?
As you know, the real estate market has been on fire. In today’s market update, I want to backtrack a little and focus on the Houston market specifically. When you look back at the market just before COVID hit, we were already starting to see signs of a healthy and robust real estate season. Typically, that season runs from March through sometimes August or September.
Of course, when COVID hit, the market took a pause; we weren’t able to view properties or do much of anything. Six weeks later, though, the market began to ramp back up again. Homes were selling, and inventory only continued to decrease, meaning that there were more buyers in the market than there were homes for sale. We always have an influx of people moving to Texas, especially to the Houston, Dallas, and Austin areas. As we began to adjust to the pandemic, this insanely busy seller’s market started and hasn’t stopped since.
Now, we’re not sure what the pandemic will bring. People are wondering when we’re ever going to get back to normal, and as such, they’re concerned about undergoing real estate transactions with the pandemic in tow.
Things have begun to loosen up, especially here in Texas, where masks are no longer required except by those businesses that mandate them. However, inventory is still shrinking. For the Houston market, the average balanced market has about six months of supply, meaning that if no new homes were put on the market, we’d sell out of what we had in six months. On the national level, we have about two months of inventory, which is historically low.
Mind you, a market like this can’t last. In 2014, home appreciation was the highest it had been in 30 years. Now here in 2021, it’s happened again. We don’t have a crystal ball to tell you exactly what’s going to happen in the future, but I’ve been studying the market every day, listening to experts and those I collaborate with; a bulk of them say that we will see more homes on the market in the latter part of the year.
However, that doesn’t mean it’ll turn into a buyer’s market, so don’t get your hopes up, buyers. It does mean that we’ll likely lean back toward more of a balanced market, though I don’t anticipate that we’ll be back up to six months of supply until probably 2022. Even four months of inventory would be a good, healthy market for buyers. Today’s market, however, has been stressful for buyers, who are having to compete against multiple other offers for homes, many of which are cash offers.
Buyers: Remember that this too shall pass. At the moment, interest rates are still low, which increases your buying power.
If you’re a seller, right now is a great time to sell. You may have some difficulties finding somewhere to move, but one option is to rent for a few months after selling while you look for the perfect home to purchase yourself. If you list with us, our Love It or Leave It program will help you out with that.
If you’d like more information about this program or the market in general, don’t hesitate to reach out to me.