LOWEST INVENTORY EVER!
The market is beginning to get desperate! Yes, it is still a sellers market. Yes, houses are still selling and yes they are selling TOO fast!
At the beginning of 2020 we reached a historic low inventory of just under 300 Active residential listings in our MLS (Jefferson City Area Board of Realtors). As of today, January 22nd, 2021 we are at 127 active residential listings. In a year, inventory has dropped by over 50%.
What is actually happening? Real Estate Agents are working with a long list of home buyers that are pre-approved and ready to buy. As soon as your house hits the market, the showings will stack up. If the house is a possibility, then fear of missing out on this house strikes and they make an offer. Now there's multiple offers. Sellers are getting over asking price and houses are still appraising and the house lasted 24 hours on the market. As long as rates are SUPER low, inventory is low, prices will not drop. This is what I meant when I called the market of 2020 “Chaos!”.
It is a hard gamble for sellers moving on to the next house. There is a positive though. Some sellers do not have to do a “Contingency for sale of buyers existing property” on their new purchase because their house will sell in a shorter amount of time. This means sellers can save money on not having to do a bridge loan, or have to pay two mortgages because their house might take months to sell. But when will the next perfect new home show up after losing out on 3 previous offers?
We are also seeing properties go under contract that never hit the market. The for sale by owner inventory has grown because it seems very easy to sell a house now. But guess who is bringing them most of the buyers? Licensed Real Estate agents!
All of the real estate offices need inventory. 127 homes for sale is incredibly low, especially for a location of this size. Buyers, please don't give up, the opportunity always shows up. Stay positive and stay ready. Sellers, CALL ME NOW! If you want to wait till Spring to sell your house, get ready for more competition. The market is looking for your house RIGHT NOW!
I don’t see prices dropping with inventory this low. I do see prices dropping with people not paying their mortgages (obviously) and foreclosures hitting the market. Will this happen? It might, it has before. Either way, consult your trusted real estate professional. We are here to help you with your real estate decisions and facilitate the purchase/selling/investing process.
Good luck to all the sellers and buyers this 2021! Please do not hesitate to reach out to me about the current market.
Thank you and God Bless!