We are in a VERY UNIQUE WINDOW right now, which reinforces that there may not be a better time to sell than the second quarter of 2021!
We are currently in an extremely strong sellers market. There is very little housing inventory (low supply) and an abundance of buyers (high demand). This situation is a direct reflection of concerns around COVID and super low mortgage interest rates. These factors are colliding to create a ‘perfect storm’ for sellers.
To explain concisely, there are two forces at play:
1. SUPPLY (SELLERS) – There are many would be sellers who have chosen to hold tight over the past year and not sell because of COVID. They simply do not want to open their homes up to buyers! As such, we have had and continue to have historically low inventory.
2. DEMAND (BUYERS) – There is super high buyer demand based on COVID… there is a dramatic influx of people moving from denser population centers to the area, there are many people who, having spent more time than ever at home over the past 12 months, have realized that their current home does not meet their needs Couple these factors with the fact that money is ‘cheap’ at present… people looking to capitalize on historically low interest rates.
THE RESULT. When properties come onto the market that are well prepared, well presented, and well priced, we are seeing extremely high showing demand and multiple offers, at well above asking price. This phenomenon is causing rapid appreciation. In the last 12 months in Boulder County we have seen appreciation of up to 20% for single family homes and 10% for attached dwellings. And, this pattern is continuing stronger than ever here in 2021, with 2% appreciation per month in certain areas and price points!
However, this supply and demand imbalance is likely to balance out in the second half of 2021. WHY?
1. SUPPLY – As we see higher vaccination rates (hopefully by mid summer) home owners will feel less wary about COVID and will feel more comfortable about selling, and will be HIGHLY motivated to realize the rapid appreciation they have seen in their homes.
2. DEMAND – We are likely to see interest rates creep up, which will cause buyer demand to wane somewhat.
It is still promise to remain a Sellers’ market, but not to the degree of imbalance we are seeing at present.
Hence, the second quarter of 2021 is a fantastic opportunity to sell and realize the benefits of THE PERFECT STORM!