2021 Q1 Market Overview

Industry experts are suggesting that we are pulling demand forward from future years. Continuing down this path brings the proverbial question of “are we in a bubble?” A real estate “bubble” is characterized and fueled by speculation, and that is not what we are seeing now. The unprecedented market strength we are experiencing today is driven by simple economic fundamentals: supply, demand, and the cost and availability of money. The high demand means tougher competition for the buyer pool, but with more and more projected sellers deciding to list this year, emerging inventory could lead to market shifts in the not-so-distant future. “I would encourage everyone to recognize that this might be a very hot year in terms of real estate,” says Chris Stuart, CEO of Berkshire Hathaway HomeServices. “But I’d hate for anyone to be on the sidelines and miss out on an opportunity either on the buying or selling side of the transaction.” It is expected that the current low inventory, high demand climate will continue into the spring and summer months. With renewed hope on the horizon through vaccines and warmer weather approaching, now is the time for sellers to take advantage of the strong priced market we are seeing. Additionally, historically speaking, buyers should be very confident that regardless of any short-term corrections the overall outlook for real estate appreciation is very favorable. Good to Know ®