The question of the day – of the year is: is it a buyer or a seller’s market? If I am going to be in a real estate transaction today, am I going to have more leverage as the buyer or as the seller?
Well, today it is officially a seller’s market. And the reason for that is that the amount of people trying to buy houses is a lot higher than the people trying to sell houses. But why are there so few houses? Well, part of it is very related to why so many people want to buy. We are looking at some of the lowest interest rates in history – which means buyers can get more house for the same house payment.
With the craziness of 2020, many want to get out of their present homes. Working from home, schooling from home and just spending more time at home, many people need a different home. However, even more people are choosing to stay put. They like where they are. They want to save money themselves, so instead of moving, they are refinancing their loans. However, this means fewer homes on the market. Which again means – it is a seller’s market.
The result of this discrepancy between supply and demand, prices have gone up. In December 2020, prices were 13.7% greater than they were the year prior. Normally we expect that that rate of growth to be a little lower, like 5-6%.
These prices are not going to be sustainable forever. Now, do I think the market going to crash? Probably not. Eventually the market will level out, but I do not believe it will be super drastic like in 2008. But I think this growth is going to continue for 2021.
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If you have any questions or if you are thinking of buy or sell their house, please reach out. I am absolutely more than happy to help you any way that I possibly can.
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Reno is a key partner in the Sandi Reed Real Estate Group. He provides all of the real estate services you need with a personalized touch for your specific situations throughout the Kansas City Area. His energy and insights make him a great advocate for his clients, and a perfect choice to be your Realtor!
http://homevaluesleessummit.com 816-877-8732 Call Sandi To Sell Your Home Fast!
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