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Homebuying in 2021

Finding a house on the market that is still available is HUGE. If the last few years have taught us anything, it’s that we are in the ultimate sellers’ market. According to the Keeping Current Matters, “The National Association of Realtors (NAR) notes homes are getting an average of 4.8 offers per sale, and that number keeps rising. Why? It’s because there are so few houses for sale.”

The housing market is undersupplied. Looking from 1970-2009, the average single-family housing units completed by decade were averaged at 11.025 million (not seasonally adjusted) and from 2010-2019, only 6.5 million homes were completed. It is thought that the reason why there is a shortage is because homeowners are hesitant to sell likely due to the pandemic, which is partially true. In actuality, there is a serious lack of new construction, coupled with the pandemic and the costs to build being astronomical. The U.S. Census Bureau has reported that builders have increased production of homes, but there is still a substantial shortage. Catching up to demand will be difficult as there are approximately 4 million homes that would need to be built according to Freddie Mac.

If you’re a homeowner looking for reasons to sell your home. Here are a few incentives on why it’s not a bad idea:

  1. Owning your home
  2. Buy before prices continue to rise
  3. Secure a historically low mortgage rate

But also, it’s the perfect time to maximize profits. Bidding wars are at all-time highs and some homeowners are listing a house for 4 days. Then they will accept no other offers except those from the 4 days, enticing buyers to give their best offer possible. On average there are 4.8 offers on a home, and the average U.S. home is selling above list price.

Updating your home may not even be required if it’s in good shape. With many people working from home and enthralled with home improvement projects, selling without doing much work to the house could be mutually beneficial and should not hinder the sales price, if reasonable.

Homeowners packing up their kitchen to prepare for their move

So, if you’re in the spot to sell your home, reach out to the Jen Martinez Team and let us help put you in contact with a qualified, local real estate agent and we can discuss your pre-approval needs to get you looking at that next new home!

All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. CrossCountry Mortgage, LLC (“CrossCountry”) does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by CrossCountry.