Here’s the state of our market as we hit the halfway point of 2021.
As you can imagine, the market is as hot as the summer as we move past the midpoint of 2021. It’s hot for sellers and strong for buyers as well. Sellers are getting multiple offers for their homes, and buyers are buying into a rising market.
I’m often asked, “Jon, what have you been doing for 30 years other than selling houses? You’ve seen ups and downs, good markets and bad markets—we want a prediction. What’s going to happen to home prices this year?” I only have one answer: I have no idea. We’re truly in uncharted territory, with artificially low interest rates and the Federal Reserve priming the pump with trillions of dollars’ worth of stimulus money. No one knows what’s going to happen, least of all me. If I did know, I’d be on Wall Street.
The demand for homes in Northwest Ohio remains strong, and that won’t change—both for people who are here now and outsiders who want in on our amazing values. Here are a few points to consider moving forward:
1. Pending home sales have surged. According to a report from the National Association of Realtors, pending home sales rose by 8% from April to May. Economic reports thought there would be a 1% decrease, but they were wrong.
2. More homes were listed in June, but prices have hit all-time highs. We saw a much-needed influx of inventory over the last month, and sellers are looking at the market like now’s the time to sell.
“Quick sales with multiple offers continue to be more of the norm than the exception.”
3. Sellers must have a moving plan from the start. I really never worried about this until this year, and now I tell my sellers this all the time. What if your home sells in one day? You need a plan before putting your home on the market.
What does all of this mean for you? As long as demand remains high and inventory stays relatively low, homeowners are in a great position to sell. Quick sales with multiple offers continue to be more of the norm than the exception. Also, the average price per square foot for the major suburban cities around Toledo is up. In fact, the Northwest Ohio area reached an all-time high of $110. The artificial months’ supply of inventory, meanwhile, is down across the board to an almost unprecedented 1.5 months.
So if you’re driving around your neighborhood or city, here’s what you say: “It feels like there’s nothing for sale!” This puts more price pressure on buyers and gives sellers a more commanding attitude. Overall, it’s a great time to sell and it’s a great time to buy with cheap money.
If you have questions about our market or there’s anything I can assist you with, don’t hesitate to reach out to me. I’m here to help.
