The thriving housing industry we have witnessed for months on end is the first indication that the market is far from normal. Looking at actual metrics, we see that demand is still going strong despite low inventory (which has been predicted to increase in the later months of 2021). Keep reading for more reasons why we are currently experiencing a very abnormal housing market.
1. Low Mortgage Rates
If we study Freddie Mac’s mortgage rate average by decade, we see that the highest was 8.12% in the 1990s and the lowest was 4.09% in the 2010s. However, today’s average rate is about 2.87%, which is extremely close to near-historic lows.
2. Amount of Inventory
According to the National Association of Realtors’ latest Existing Home Sales Report, the current months’ supply of housing inventory stands at 2.6 months which is less than half of the supply in a normal year.
3. Number of Offers
The National Association of Realtors reports that the number of offers per listing is currently 4.5. That same number was a mere 2.2 back in 2019.
4. Number of Days on Market
According to the National Association of Realtors, prior to the current health climate, the average days on market stood at 35.... As of today, that number has dwindled to 17 days!
5. Home Price Appreciation
According to housing data company Black Knight, the average annual appreciation on residential real estate prices since 1995 has been 4.14%. However, the latest price forecast from the National Association of Realtors predicts that home price appreciation will hit a whopping 14.1% in 2021.
If you are ready to learn more about how you can take advantage of the current abnormal real estate market to buy or sell your home, contact me today....lets chat!.
Source: Keeping Current Matters