2021 has been a record year for sellers. Average home prices are dramatically higher year over year, and the median time to sell is much shorter. Low mortgage rates coupled with low inventory has made it a seller’s market across the United States. In South Florida specifically, we are seeing a huge number of new residents relocating for a better cost of living.
There is no doubt it’s a great time to sell. There is a seller’s advantage and a lot of opportunities.
Low Inventory – There is historically low inventory nationwide. With low mortgage rates and the pandemic increasing the demand for more space, there’s a large number of first-time buyers and buyers looking to relocate. In April, there were 40% fewer homes on the market compared to last year.
Bidding Wars – As a result of the supply and demand imbalance, home buyers are entering bidding wars drastically increasing the home sale price. In most cases, homes will sell at least $30k over the listing. Bidding wars are great for sellers. Not only is the home price increasing, but cash offers, shorter sales times, and other incentives are also added.
Days on Market – On average, homes are listed for less than 30 days before going under contract. After the offer is accepted, home sales have a 30-day closing period, making the average time it takes to sell a house 55 – 70 days in the US. The only downside for sellers is that if they are hoping to buy elsewhere, they will run into similar low inventory issues.
Recovering Economy – Since March 2020, the world has experienced high unemployment rates, but the negative impacts of COVID-19 are beginning to subside. Businesses are adding back jobs, and companies have learned how to navigate the changing business landscape.
Buyer Needs – Home buyers’ needs have changed in the past year. Buyers aren’t necessarily looking for the latest home renovations. Instead, they are focused on finding a house with home offices and good outdoor spaces. Spending months on lockdown has made potential buyers reevaluate what important for where they live.
Overall, if you are ready to sell or trying to decide, it’s a great time list. Get in touch today!