PART 4: 4 Predictions for the RE Market for 2021

PART 4: 4 Predictions for the RE Market for 2021
Speaker 1:
Are we going to see inventory levels go up in 2021 and how will this affect the market?

Hi, I’m Isabelle Guzman, realtor with eXp Realty. And in all my years in the industry, I have never seen inventory levels this low ever. What does that mean for a seller and a buyer? Well, lower inventory levels cause home prices to go up because buyers are bidding over the list price. So this causes homes to increase at higher levels. So, it’s great for sellers, but makes it much more difficult for buyers. Lately we have seen many multiple offer situations, sometimes three, sometimes four, sometimes 10 offers at once, which 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 are taking factors into account such as down payment, type of loan, contingencies, and much more when they choose their offer. So buyers are having to come in as strong as possible with their offers.

However, the median age of an owner occupant is about 57 years of age. We’ve been told by the health professionals that’s the older you are the more at risk you are with the virus of having serious complications. So many older Americans have waited to list their home. This is one of the factors that has led to the lack of inventory. I believe that inventory levels are going to go up once people feel more comfortable listing their home because they aren’t fearful of getting sick. Also, CoreLogic predicts the turnover rate, the percent of houses that sell in 2021, to be higher than the 20 year average turnover rate.

I hope this was helpful. As always, please feel free to reach out if there’s anything I can do. Be sure to check out my YouTube channel to watch all four 2021 predictions. And don’t forget to like my Facebook page. I’m Isabelle, bringing you home.
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