If you’ve considered buying or selling within the past few months, you’ve most likely noticed that the market seems…well…a little crazy! The competition for buying is at a new level! There are many factors that play into this, but here are 4 conditions that greatly contribute to today’s competitive housing market.
First, the market is what agents refer to as “locked up.” In other words, there are simply not enough properties for sale. This creates a loop of sorts: with little properties available, people who might consider selling are choosing to wait, refinance, or stay put and make improvements to their home. Low inventory leads to less people listing their home, which leads to low inventory, which leads to…you get the idea!
Second, low inventory = heavy competition! The same buyers are looking at all the same properties. This means multiple offers, and more often than not the property sells in record time. This is great news for a seller who is hoping to receive top value for their home!
Thirdly, people are wisely choosing to invest in real estate. Real estate investment creates a natural hedge against inflation, which many fear is coming. Consumers are purchasing second homes to flip or rent out, or putting more money into their current home, increasing it’s value for a potential future sale.
Lastly, we must consider the limits of new construction. While new builds are in high demand and appear to be popping up everywhere, construction companies can’t seem to build them fast enough. Land prices, supply chain issues, and lack of adequate labor are preventing the process from running as smoothly and quickly as one would like.
Despite its challenges, a competitive market is a great thing! If you’re considering selling, there really isn’t a better time! Whether buying or selling, it’s so important to have a great agent in your corner. Don’t go it alone. If you’re buying, find an agent with experience who knows how to craft an offer that will stand out above the others, and who isn’t afraid of a challenge. If you’re selling, choose someone who will create a unique marketing strategy and help you get the most value for your home. At LEAGUE, our agents are competent, experienced, equipped for battle and as always, #ReadyToServe!