Hi this is Jack Ma with Jack Ma Real Estate Group at Century 21 Masters. Thank you for watching Real Estate made simple.
By now you probably had heard the real estate market is hot, homes are selling in days and prices are going up. That’s an understatement. Unless you are actually in the market, you will not believe how hot the market really is. It is very common to see listings getting 10, 20, or even 30 offers. Buyers are frustrated and pulling their hairs out trying to get into a property. Often time 5 or 10% above the asking price is not even enough to secure the purchase. That is an inventory problem!
As the COVID vaccine being rolled out, we are seeing a remedy for the inventory problem too – The spring season is coming. It is a time when more real estate activities occur than any other time of the year. It is when inventory rises and demand surges and peaks. Many people think that summer is the best time of the year for real estate but it is actually Spring. More homes are listed, more homes and sold and more homes closed in Spring than any other season.
Spring 2021 will be no different. The problem now is that there are simply not enough homes to satisfy the buyer’s demands. We are sitting on the lowest inventory since 2012 and we are seeing 16% less home compare to March 1 of last year. So any increase in the available homes for sale is a welcome sight!
So when will we see more homes coming to the market? The historic record shows that we will see that in March, the beginning of spring. An elevated number of homes will hit the market from March through August, peaking in June. It will bring a sigh of relief from the buyers in the market.
So how will that affect the market? Does that mean the price will soften? Probably not. The discrepancy between the numbers of available homes for sale vs buyers on the market is huge. More homeowners will put their homes on the market. Buyer demands will remain high. We probably will see a bigger increase in supply than demand. The market will remain hot and prices will continue to appreciate. It will just be slightly easier for the buyer to secure a property and appreciation will be slightly slower than the last two months!
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