Dave’s May 2021 Market Update

24k Real Estate Market Update MASTER MAR 21

Inventory is up 26% - will it help buyers – will it slow the pace of price appreciation?

A comparison of April 2021 to April 2020 is a tough one. It is comparing two extremes. The real estate market in April 2020 was mired in a complete shutdown, whereas we are now in the midst of an accelerated market, the likes of which has rarely been seen.

It is encouraging to see statistics like Days of Inventory and New Listings looking more positive. I do believe that needs to be balanced against the likelihood that this time last year, many sellers who normally would have listed their home did not, due to the pandemic.

The next 90 days will provide better insight to how long we will see this super competitive market continue. I will be watching the market very closely as always to be on top of the week-to-week nuances. Feel free to reach out for my thoughts on strategy regarding a purchase or sale.

Right now, if you are looking to buy, I will reiterate some strategy I shared last month: For many, the best opportunity is new construction. Most builders are not creating bidding competitions. The best tools for finding getting a new construction home is letting me use my relationships to get you the best chance of getting a lot/ home as they are released. One word of caution: with the pace at which houses are being built, let me make sure your new home does not fall victim to serious mistakes. I use a professional inspector who does multiple inspections throughout the build. I provide FREE 4 stage inspections for my clients who buy a new construction home. It is tough for buyers to part with another $1,300 or so for these and I know the importance of getting them. It is one of the ways I look out for my clients. It has paid serious dividends for my buyers. Everything from missed insulation, mold issues, improperly installed roof components and a host of other issues have been found and corrected thanks to these inspections. REMEMBER – CONTACT ME BEFORE YOU GO TO THE SALES OFFICE – OTHERWISE THE BUILDER CAN DENY YOU REPRESENTATION.

If you are looking to sell – let’s talk strategy BEFORE you are close to putting your house on the market. It is best to start as far in advance as possible for a host of reasons.

  1. If your house needs any preparatory work; contractors are booked out as much as 30 days in advance.
  2. You will want to know what really needs your attention and what doesn’t in this market. I do not want you to spend money and use your time on things that won’t give you a better return. However, there are some things that you still must do to maximize what you get for your home.
  3. When should we launch your listing? We are seeing peaks and valleys in the number of listings coming on the market. It is best to try and time it to take advantage of an extreme lack of competition.
  4. If the price needle is moving in your favor, let’s make sure we have the market data to help support a great price for your home. That means I will do the research on the latest pending sales, so we know where the market is headed. Using closed sales will not give you that insight. The strong relationship I have with my peers helps me get that information for you.
  5. There is also the calculation of the “sweet spot” in pricing. What price is defensible to an appraiser AND still likely to bring multiple offers in excess of that number? Why is that important? Let’s discuss that strategic gem when we meet….

Speaking of meeting – the 24K Real Estate Annual Client Appreciation Barbecue will return this summer!!!! I am still working out the details of how food will be provided but with this being an outdoor event, I don’t see any reason to miss the chance to see you all and say “thank you” once again. You will see your invitation in your inbox soon. Until then, consider this your “Save the Date” notice. August 14th at noon is the date. I am so excited to see all of you.