As we continue into 2021, the robust market that we experienced through most of 2020 continues unabated. Record low interest rates and a serious shortage of inventory is creating an increasing number of multiple offer situations, especially on single family homes.
However, condos are also starting to feel the heat. As house prices rise out of reach for many buyers, our internal research is now showing a rapid increase in competition for condos, especially in the last week. We expect this trend to continue and intensify rapidly. Consider this fair warning to condo buyers to act quickly.
How you feel about these market conditions clearly depends on whether you are a buyer or a seller. For sellers, there is an immense opportunity right now to sell at the highest prices that we have seen, especially for difficult to sell homes. Inventory could eventually build and moderate demand, but until that happens, there is a great short term opportunity.
For buyers, the market is extremely frustrating, and often heartbreaking, as dream homes receive multiple offers, often without conditions. Although it can be tempting to simply give up, working hard to secure a home before prices rise further could end up being the winning move. Buyers are strongly encouraged to make sure that their financing pre-approval is in perfect shape and to consider conducting a building inspection prior to writing an offer. With so much competition for each home, a strong offer with few or no conditions often wins the prize.
Although this market may feel unprecedented, it really isn’t. As recent as the spring of 2017 we experienced similar low inventory levels with an even higher percentage of multiple offers. Whether buying, selling, or both, you can rely on our experience to guide you these market conditions.