Are we gonna see inventory levels go up in 2021 and how will this affect the market?
Hi, I’m Jennifer Prestwich, the Prestwich Group at Madison Company Properties. In my 13 years in this business, I have never seen inventory levels this low ever. So what does that mean for a seller and a buyer?
Lower inventory levels cause home prices to go up because buyers are bidding over list price, so this causes homes to increase at higher levels, but it’s great for sellers, but it makes it much more difficult for buyers. Lately, I’ve seen 15 offers or more on properties that I’ve listed.
This makes it hard for buyers to have their offer chosen, but allows sellers to choose the terms of the contract that are most favorable to them. They’re taking factors into account such as down payment, type of loan, contingency waivers when they choose their offer, so buyers are having to come in as strong as possible when they make an offer.
CoreLogic’s fourth prediction is that the turnover rate or the percentage of homes itself will go up in 2021 at a rate that’s higher than the 20-year average.
Here’s something interesting. The median age of an owner occupant is about 57 years of age. So given the current health crisis, many older Americans are waiting to list their homes. This is one of the factors that has led to the lack of inventory.
This is why CoreLogic predicts a higher inventory level and turnover rate for 2021. Once people feel more comfortable listing their home because they aren’t fearful of the possibility of getting sick, this will increase inventory.
I hope this information was useful to you. Be sure to check out my YouTube channel for all four of the real estate predictions for 2021. I’m Jennifer Prestwich, the Prestwich Group at Madison Company Properties. And remember, life is too short not to love where you live. I’m out here living the Denburbs life and I wanna help you do it too.