If you’re planning to sell your home, let us just extend a hearty “congratulations” to you, as chances are you’re going to be receiving a significant return on your initial investment.
As you probably already know, the housing market is absolutely white-hot right now — if you’re a seller, that is. If you’re a buyer, you can prepare to do your best to out-bid your competition, which you can be certain will be plentiful.
In fact, according to real estate experts, home prices have increased by an average of 16 percent from last year. In some areas of the country, value is up more than 20 percent. And what’s really driving this sizzling seller’s market is that inventory is limited. In fact, the number of homes that are for sale is down about 30 percent from what it was around this time one year ago. It’s leading to all-out bidding wars, and often it’s the buyers who are willing to pay cash or meet the difference between their initial offer and whatever the appraisal comes in at that have their offers accepted. It’s a great position for a seller to be in as inventory has dwindled, yet the number of buyers has grown.
Should You Buy or Wait?
Having read that first section, you’re probably inclined to wait until the market cools off a little rather than dip your toes into the bidding war. But that will likely come with a caveat as well. For instance, if you wait, you may see the market stabilize and not have to fight tooth and nail for a property that you like. But you also may be subject to paying higher interest rates on any mortgage loan that you take out.
Another thing contributing to the large number of homebuyers right now is the historically low interest rates on mortgage loans — but that certainly isn’t going to last forever. It’s why experts are advising buyers to continue shopping now if they’re comfortable paying a little bit more for the property. Some experts are saying interest rates are likely to begin ticking up again in the second half of 2021.
Is Inventory Likely to Increase?
It’s hard to say. It’s estimated that more than 2.5 million homeowners are in forbearance with their lenders and not likely to sell. Millions more are likely content with their current living situation and perhaps even took advantage of historically low interest rates to refinance to lesser monthly payments or shorter loan terms over the course of the past year. This latter group of homeowners isn’t likely to be selling anytime soon, either.
The one thing that could help increase inventory is the pace of home building, however, even that is murky. For one, home building has been lagging. And two, material prices have skyrocketed, leading to cost increases that many prospective homeowners don’t want to take on.
Absolute disaster coming in R.E. If you can sell and take your profit (me I’d do so) – you probably won’t get another chance? This whole Medical Technocracy attempt for taking over Societies in conjunction with the Globalist Socialists for one World Government is only going to raise your taxes extraordinarily including property taxes. Then there’s rising % rates, that always deflates market R.E. prices. We’ve ended a 39 year falling % rate environment for a new rising one (and they’ve tripled in last year alone) – and their will be massive Inflation in 18-24 months due to the never precidented $500 Trillion in all forms of Debt and Derrivities (that can’t and won’t be repaid), that the World has ever witnessed before. This soon to be bout of Inflation will be even higher than 1979-1980, and that killed R.E. prices.
Many sectors of the Economy never coming back to where they were before Covid, is just going to depress wages as more people out of work competing for what little amount of jobs remain. That’s not even talking about all the Forbearance homes to hit the market within next 6 – 12- 18 months. It’s going to be a “blood bath” for the R.E. Markets. And this is no simple ordinary Depression we’re in!
No this is a Super Cycle 230 year Super Depression, the likes of which the World has not seen since right after the French Revolution. Think “Les Miserables” all over again.
Folks it’s like standing in your drive way looking to protect your home from: A tornado, a Hurricane and a Blizzard coming your way all at the same time. You feel lucky?