Key Takeaways:
- As we move into the second half of 2021, one thing is clear: the current market is one for the record books.
- Today’s unusually competitive market conditions create unique opportunities for both buyers and sellers.
- Want to buy or sell a home in the Triangle? Contact Linda Craft & Team at 919-235-0007 to get started right now!
Today’s Real Estate Market Explained Through 4 Key Trends
Even if you aren’t thinking about moving soon, you’ve probably heard that the 2021 real estate market is unlike anything we’ve ever experienced. Record-low interest rates, skyrocketing buyer demand, and dwindling inventory have made competition for homes fiercer than ever before. However, the mix of conditions we have today creates opportunities for both buyers and sellers. Here’s a look at four key components that are shaping the Triangle’s unprecedented market.
A shortage of homes for sale
Earlier this year, the number of homes available for sale fell to an all-time low. While inventory did begin to trend upward over the last few months, we’re still seeing dramatic shortages that will affect the Triangle market for the foreseeable future. According to a report from Realtor.com, newly listed homes grew by 5.5% year-over-year and 10.9% month-over-month.
This is fantastic news for buyers craving more options and a little less competition. It should also be a sign for sellers to list while inventory remains relatively tight.
Increased buyer competition and bidding wars
Today’s ongoing low supply coupled with high demand creates a market characterized by high buyer competition and bidding wars. Buyers are going above and beyond to make sure their offer stands out from the crowd by offering over the asking price, all cash, or waiving most contingencies. In fact, the average home on the market today sees a record-breaking five offers—that’s higher than ever before.
Sellers should take advantage of this tight competition while they still can. And if you’re a discouraged buyer, have no fear—your Triangle agent can help you craft a winning offer in no time!
Home price appreciation
All this increased competition has home prices reaching sky highs. Over the past year, home prices have rapidly appreciated across the nation, with the average home value climbing by around 15%. We saw the highest year-over-year gains in May of 2021, but prices have cooled off a bit since then.
Rising home values are a big part of why real estate remains one of the top sought-after investments for Americans. For potential sellers, it also means now is a great time to list your house and maximize your hard-earned equity.
A rise in home values and equity
Prices aren’t the only thing on the rise—today’s homeowners are enjoying unprecedented equity gains, too. In short, equity is the difference between what you owe on your mortgage and what your home is currently worth. And as home prices continue to increase, potential sellers can use this newfound equity to their advantage.
High equity doesn’t just benefit sellers, though. If you need to buy a new home after you sell, you could find yourself with more money than you might expect. That means you could upgrade to a nicer home or use the extra cash for some projects around your new place.
Don’t Be Overwhelmed by the Triangle’s Real Estate Trends!
Wondering what all of these real estate trends mean for the market? To put it simply, there’s no time like the present to buy or sell a home in the Raleigh area. And if you’re looking for the right real estate agents to help you out, it’s time to call Linda Craft & Team at 919-235-0007. We’d be honored to leverage our 350+ years of combined experience throughout your next real estate journey!