April Market Update
The market has grown 12% in the last two months and the average price within the last 3 months has grown by $65,000. The market normally grows 6-10% within a year, but this year it has grown 23%. This is not normal and you should not let people tell you it will stay the norm.
AVERAGE SOLD PRICE:
- April 2020 – $523,851
- April 2021 – $644,736
This is a 23.1% increase from last year to this year. This can be attributed to the lack of inventory combined with emotional buying.
- April 2020 – 2 inventory
- April 2021 – 0.6 inventory
What does this mean? If we added no new homes to the market in the month of April it would take 2 weeks to run out of inventory.
- April 2020 – 10,047
- April 2021 – 3,255
With such a low number of homes going on the market and such a high demand, there are a ton of offers that range from $50K-$100K over the asking price. Many of those offers are cash offers.
If you are selling your home, you are in luck because people will be pouring in to see your home. If you are planning on buying we recommend waiting a bit or you will end up losing money on a deal that is not worth what you are paying.
- People are saying “People Can’t Afford to Buy” – This is so far from the truth it is ridiculous. If you have a home of $650,000 and two incomes of $50K you will still have money left over to save. It is more plausible now than it was in the ’70s.
- Buyers – There are still deals right now; BUT, let us take it slow and be cautious. Reach out and we will set a plan into motion.
- Sellers, Buyers, and Investors – You need to call an expert. Do not rely on an agent that is trying to get the deal done quickly or says now is the time to buy because the market will not go back to the “norm.”