Hi, This is Jack Ma w/ Jack Ma Real Estate Group at Century 21 Masters. Thank you for Watching this episode of Real Estate Made Simple!
Quarter 1 was officially behind us. It’s pretty crazy to think that we have been over 1 year into this pandemic. Other than the few weeks when the pandemic just started, the real estate market has been on a wild ride. As of April first, we saw an increase of 17% in home value in the last 12 months in our local marketplace. Normally housing market is averaging 4% appreciation in a year. We essentially saw 4 years’ worth of growth in a year! Which is absolutely crazy!
The primary drivers for this market were historic low-interest rates and historic low inventory. The law of supply and demand dominated the performance of the real estate market despite a soft economy.
So the question is …what’s next?
One thing worth noting is that we saw the number of for-sale increase for the first time since May of last year. This is pretty normal since the Real estate market is seasonal and March marks the start of spring where real estate sales activities started to pick up.
Another major factor will be how fast we are seeing the world opens up post-pandemic. There are a lot of homeowners who were reluctant to put their homes on the market during this pandemic because they do not want strangers coming in and out of their homes. These suppressed inventories will start being released we go back to our normal life.
So we can logically predict that we will see an increase in supply and cooling down the market a little bit if the interest rate did not start dropping again.
Now does that mean the price will drop? Definitely not! We are in such a deep seller’s market that unless something drastic happens….we will still see prices continue to grow but at a lower pace.
So if you are on the fence about selling your home, we may have seen the peak of the seller’s market but it is still a fantastic market for sellers. You will still see bidding wars driving up the price.
For buyers…. the price is not going to drop. If you wait, you may be hit with a double whammy – higher price and interest rate than you can.
If you have any questions regarding real estate, kindly call at 909-529-1989
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