It is tough buying a home in today’s housing market. Most buyers find after scheduling a showing, writing an offer their enthusiasm begins to dim as they find out that there are multiple offers on their “perfect” home. After going back and forth with the seller, the buyers learn that they were not the winning bidder on the home even after making an over list price offer.
This scenario plays out repeatedly across the United States, not just in Orange County. Many buyers find success, just not immediately. It is frustrating and many buyers come to a point where they simply want to give up. Should they wait until the market slows and tilts more in the buyer’s favor? Will it get easier anytime soon? Unfortunately, it will not get any easier and it does not make sense to wait to purchase.
What is going on is simple supply and demand. The active inventory has been at low levels ever since 2012 and a few times has dropped to unprecedented lows. The New Year will start with fewer homes than 2013. That means that the inventory in 2021 will be below 4,000 into the Spring Market.
Demand is also currently at unprecedented levels. It has not been this high at the end of November since 2012 when housing just came out of its Great Recession slumber and was sizzling hot. With mortgage rates at record low levels, below 3%, demand will remain elevated. The low mortgage rate environment is forecasted to continue throughout 2021. Waiting is not the answer. Based upon today’s supply and demand, the longer a buyer waits, the more homes will appreciate. That will be the story in 2021 as well. Additionally, mortgage rates are at unprecedented record low levels. According to Freddie Mac’s weekly Primary Mortgage Market Survey® released on November 25th, the 30-year fixed remained at 2.72%, its thirteenth record low this year. Mortgage rates are not forecasted to go any lower in 2021. In fact, there is a stronger chance that they will slightly rise as the economy improves next year. Higher rates combined with higher prices does not work in a buyer’s favor.
Attention Buyers - Do not wait to purchase! Delaying a purchase will result in higher prices and higher mortgage rates, cutting into home affordability. The current housing market may be frustrating, but it would be foolish to wait and not take advantage of record-low rates and lower home values.
Buying a home in today’s market does not have to be tough. My last 4 buyer clients wrote offers and received acceptance even under multiple offer scenarios. It takes more than just a good offer price but a myriad of tactics. My proven offer strategy works and is getting my clients’ offers accepted! If you or a friend are looking to purchase, I am here to help and will demonstrate what separates my strategy from the majority of other Realtors.
1. Over 25% of all emails are sent during the holidays. (marketingprofs.com)
2. On Black Friday, 55% of parents check the availability of items on their smartphones prior to going to the store. (iab.net)
3. The average consumer spent $407 on Black Friday last year. (statisticbrain.com)
4. 33 million real Christmas trees are sold in the U.S. each year. (http://www.statisticbrain.com)
5. It takes an average of seven years to grow a Christmas tree. (statisticbrain.com)
6. 55% of Twitter users discuss gift ideas on Twitter. (twitter.com)
7. 62% of shoppers Tweet about holiday purchases they’ve made. (mediabistro.com)
8. 42% of holiday shoppers actively seek out free shipping deals. (www.statisticbrain.com)
9. Smartphones and tablets drove $419 million in online sales on Cyber Monday last year. (blogs.adobe.com)
10. 67% of consumers have purchased a gift they saw on social media. (twitter.com)