This is a monthly contribution to the Blog by local realtor Doron Weisbarth.
Inventory levels have dropped to 0.4 months – a historic low! Market activity is way up compared to last year, with the caveat that last year we were still figuring our way around the pandemic closures. Prices are up and sale volume is way up. After a year where condos were eyed with some suspicion by many buyers, who were afraid of getting stuck in a small place where they would need to both live and work (sometimes with their significant other), there is now renewed interest in condos, especially if they have 2 bedrooms and/or a den-office.
Still, we are seeing some buyer fatigue creep in, as happens almost every year around this time. Buyers, who had been bravely battling other buyers to make the perfect offer on that desirable home, are losing steam. As a result, we’ve seen more homes sitting longer, past their offer review date. This is usually not because there is something wrong with the home, or with the listing price – in fact, the price is usually spot on! But the weary buyers falsely assume that other buyers will bid the price up above what they can, or would be willing to pay, so they don’t even try. Yes, there is a limit to how far you can push buyers, as we had seen happen in the spring of 2018, when the market overheated and took about a 4-month period to correct. Will it happen this year again? Hard to say, but right now I’m betting that the answer is ‘no’. Interest rates are still nice and low, which is helping keep the demand high and will likely be this way for quite a while.
Have questions about buying or selling a home? Call Doron for a free, no-obligation consultation at 206-779-9808