Sellers should feel confident about our spring and summer market.
Would you believe that back in February there were more licensed Realtors across the nation than there were homes for sale? We only had two months of inventory and existing home sales fell 6.6% compared to January. We’re still feeling the effects of the harsh winter many people had to endure as inventory remains low nationwide. What does that mean now that spring is in full bloom? Here’s your seller’s guide to the 2021 spring and summer market and why sellers should feel confident about our spring and summer market.
This low inventory is caused by the median home price increasing 16% over the past year to $313,000. At the same time, interest rates have slowly gone up. According to Freddie Mac, the average rate on a 30-year fixed fixed-rate mortgage was 3.17% near the end of March. That’s the highest level since June of 2020. Home sales usually dip in the winter before climbing in the spring as families try to settle in before starting a new school year, but some would-be sellers are still staying put because these increases have reduced their ability to buy their next homes.
Since finding and buying a home is such a challenge, sales lagged a bit at the start of spring, but slow growth is possible in the coming months. However, according to the mortgage bankers association, demand remains quite strong. This is being driven by an improving job market as well as mortgage rates which remain historically quite low, even with the recent increases.
What does this mean for you? You still have every right to feel confident in selling quickly and for top dollar this spring. Here are two more statistics from February: Asking prices of newly listed homes hit an all-time high of $347,475 and 55% of homes went under contract within the first two weeks of being on the market.
If you’re thinking of selling your home this year and taking advantage of the wonderful opportunity, give us a call. You can reach us at 423-896-6000. We’ll be happy to give you a free home evaluation.