A More Balanced Market On Its Way this Year?

Key Highlights

• New Clever Real Estatereport indicates just 10% of intentional sellers actually sold homes over past year
• Same April 2021 Clever report indicates 77% of intentional sellers plan to list homes this year

Sellers in Inventory’s Driver’s Seat

Home sellers have been calling the shots in the country’s housing markets during the pandemic year beginning in March 2020.  Sellers have decided whether or not (mostly not to list since inventory is down -40%) to list homes and have decided winners of now almost normative bidding wars.

Perhaps during the second half of 2021 buyers may have more of a say. According to CleverReal Estate’s April 2021 financial well-being report, 65% of sellers delayed listing their homes or simply decided to not sell at all. Of those who do plan to list their home, 77% intend to list their homes “sometime” in 2021.

If even half those intentional sellers do list during the second half of 2021, buyers could face a more neutral market with more inventory instead of this currently white hot sellers’ market with little inventory.

Interest Rates Projected to Remain Low

The Federal Reserve has been consistently clear about maintaining a low interest rate environment for businesses and consumers until 2022.  Even what the Fed calls a temporary rise in prices (or short-term percolating inflationary moves) has not, so far anyway,  dissuaded these decision makers from continuing low interest rates.

Though the Fed itself does not set mortgage rates, the Fed’s actions/inactions indirectly influence rates homeowners pay on their fixed-rate home loans.

Consumer Sentiment Mixe

Clever’s report indicates that 69% of Americans believe now is a good time to buy a home.  However, Fannie Mae’s Consumer Sentiment Index dropped most recently to just 48% thinking now was a good time to buy.

Balance these differing consumer sentiment ratings with continued low rates, larger down payments due to the influx of stimulus checks and a recovering economy

Employment Increasing

Despite a most disappointing jobs report in April, jobs are slowly returning as more Americans get vaccinated and restrictive lockdowns ease.

Slight Inventory Shift May Be on the Way in Late 2021

Though it’s tricky to predict where the housing market will go and with how much inventory, the currently white-hot sellers’ market may cool in the second half of 2021 with slightly more inventory.

Buyers may be able to recover their voices by having more choices.  And investors may want to take advantage of a 1031 exchange.

Thanks to realtrends, Clever Real Estate, Luke Babich who is the Co-Founder and COO with Clever Real Estate and Fannie Mae. 

URGENT: 2021 Results Released. New FREE On-Line Web Event Reveals 17 Surprising Secrets Of The Top 100 Millionaire Agents. Get Your FREE Spot For The On-Line Webinar Now. When You Attend This Event You Will Have A Sense Of Relief Knowing You Can FINALLY Laugh At Your Money Worries – If You Follow This Simple Plan. Learn How To Generate 100’s of Motivated Leads Without Coming Off As A Pushy Salesperson and Losing Your Soul. Learn Now How To Become One of the 1000s of Agents Making HUGE Money NOW Who Never Thought They Could.