Manor Moments

Real Estate Market Update

October 2021

Submitted by Amy Dellinger, Brownstone Real Estate

Without a doubt, 2021 has proven to be a year like no other.  And, when it comes to real estate, it has been one of the craziest years ever!  Home prices have skyrocketed, inventory levels have dropped to the lowest in years, sales prices far exceed asking prices, and bidding wars abound. All this leaves some very happy sellers and some very frustrated buyers.  Due to the lack of inventory, multiple buyers have been vying for each new home that comes on the market, many to have their hopes dashed as sellers reject their fantastic offers for even more fantastic offers.  It has truly been a seller’s market!

Where do we go from here?  What will the real estate market look like for the last quarter of 2021 and into 2022?  Traditionally, as we move into fall, real estate sales slow a bit as children start back to school and sports and families transition into a new season.  And, we are seeing a definite slowing in the market.  But don’t be fooled—while things are slowing from the insanity of the past year, real estate sales continue to be swift.  Inventory continues to be tight and the demand for housing still outpaces the number of homes coming onto the market.  While we have seen home prices continue to rise, it does appear as though they are rising at a slower rate.  While we are beginning to see an increase in the number of real estate listings, overall inventory remains seriously low.  So, while it might be a great time to sell your home, it is a tough time to buy.  Those sellers moving into a second home, moving in with family or making the move to a retirement community definitely have the upper hand.

So, what can we expect in 2022?  While this is one time I would really love to have a crystal ball, we can catch a glimpse of the 2022 market by looking at what analysts and economists are saying about the real estate markets in the coming months. Most experts expect home prices to continue rising into the new year.  While they will rise, it is expected that they will grow more slowly than what we saw in 2021. Some buyers have become wary of the wild and crazy market and have been scared off by the inflated prices, low inventory and stiff competition.  As they pull back a bit, we may see inventory increase.  This may help to create a greater balance in the real estate market.

For homeowners who are thinking about selling their home, this most definitely is a great time! But there are a few things you should consider before taking that big step.  First, hire a real estate professional.  Selling a home in this fast-paced market creates additional challenges, so an experienced realtor can help you negotiate the best deal for you.  Secondly, take the time you need to prepare your home for sale.  Buyers are looking for homes that are move in ready.  So, repair that broken light fixture that you have been living with for three years;  paint the neon green bedroom that your teenager painted;  update the overgrown landscaping.  Thirdly, declutter, declutter, declutter!  There’s no point in packing things that you really don’t need in your new home, so now is the time to clean out.  Not only will it make your move much easier, but it will help your home to look great for potential buyers.

If you decide this is the right time for you to sell, get started on those repairs and on the cleanout, hire that real estate professional and make your move.  There’s nothing like a new adventure!