The housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time lows.
According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. That’s not the case, however, on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:
As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand. This is also true for RCFE homes
NAR also just reported that the actual number of homes currently for sale is down 22% from one year ago (1.64 million). Inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory – significantly higher than it is today.
What does this mean for RCFE buyers and sellers?
Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since bidding wars are more common when so few RCFE homes available for sale.
Sellers may not want to wait until spring to put their RCFEs on the market, though. With such high buyer demand and such a low supply, now is the perfect time to sell an RCFE home on optimal terms.
The real estate market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.
Whether you’re thinking of buying or selling, turn to the experts at RCFE Resource to help guide you through a smooth transaction. Call us TODAY at 949-397-4506 for your complimentary consultation. We’ll develop a real estate strategy tailored to your unique needs.
Michelle (949) 397- 4506 & Melvyn (949) 500-3630