January 27th, 2022

…NOW!

Here we are in the middle of frozen winter and we already have an incredibly competitive market benefitting sellers with not enough home supply to satisfy buyer demand. While we normally see the Spring market hit in early March or April, it’s safe to say we’re already there. The only thing missing is new listings being added to the market. Here are the factors that are contributing to an early market “heat up” this year:

1) Supply Shortage

There’s nothing to buy. Seriously. Inventories are super low and in some specific markets there are simply no options to choose from.

2) Aggressive Buyer Tactics

The few homes that are hitting the market are selling in multiple offers with very aggressive tactics being employed by buyers to beat out other offers.

3) Rising Rates

Rates are rising fast and we see buyers moving quicker than normal to capitalize on rates that are still pretty great. They’re still at historic lows but the rising rates will speed buying decisions for new buyers.

4) Leftover Buyer Demand

Many of the buyers that failed to win in multiple offers last year are still out on the hunt adding to the demand.

5) Lingering Pandemic Trends

The desire for larger homes to accommodate work-from-home space haven’t gone away and are probably going to remain for the near future.

Advice for Buyers

Work closely with your agent to make sure your offer is looking as good as possible to the Seller. Keep a solid handle on your finances with your lender so you can make strong offers without risking your financial security. You may need to adjust your expectations on the quality of home you can afford in this competitive market. More homes will be coming on the market soon, but be prepared for more buyer competition as well.

Advice for Sellers

Work with an agent that can carefully navigate a multiple offer scenario. If you were planning on listing later this year we recommend jump-starting your process and getting listed sooner. There are some great benefits to getting ahead of your competition before the market has more listings appearing. Don’t forget the basics of home prep - cleanliness, decluttering, staging, and repairs are still expected by buyers — even in a competitive market.

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When does the spring Market Begin?