Moving in the new year is going to be competitive, but with the right agent armed with the right info it could be a breeze. Below, the first chart is the most important. It illustrates if you are looking to buy – get out ASAP and don’t procrastinate. Next week literally would be perfect because usually the market heats up in mid-January. With these low inventory levels (-26% from last year, -45% from 2019), it’s going to brutally competitive for buyers, probably a few weeks into January.
The second chart shows that buyer demand is higher now (+14%) than this time last year. Increasing demand in the face of lower supply = lots of multiple offer situations.
The third chart shows that mortgage applications is seasonally higher than expected, so the buyer pool will remain large all thru the spring. If you are a seller, you should get the campaign ready. To have more sellers, you need to be able to professionally explain to a prospect why they won’t be homeless if they decide to trade homes. Talk to a managing broker if you need any help with this, and they’ll get you well prepared.
Less urgent than the first three is the fourth chart, which shows that home builders have successfully pulled a lot of building permits but have not started work on nearly a record high number of homes. Shortages of labor and building materials are likely to blame. This means that new home construction deliveries are likely to be less than expected in 2022, which will exacerbate the inventory problems.
Yes! Here’s the bottom of the email. A question that has been on a lot of peoples minds is, “When will the next recession get here?” or “how long is this party going to last?!” Here’s a chart that shows a typical business cycle and where various economy indicators show that we are in the cycle. Lots of mixed messages. I’d suggest that with the Fed poised to start raising rates, and with most of the indicators at “mid cycle”, that’s where we are. We should get another 3-4 years of economic growth before the next recession!
Make sure in this upcoming year you work with an agent that is experienced in the area and the industry. Click here to see the agents on our team!