“I have to admit, even I am a little shocked at how fast the market decided to change. It is like we had a really hot summer day and a few days later, a blizzard. One weekend we were
2021 IS OFF to the RACES
Dated: February 11 2021
The housing market took yet another race to new highs as we begin 2021. The medium sales price rocketed up 15.2 percent on single family homes and the competition in the race between buyers is absolutely brutal. In order for a buyer to actually get a chance at winning a home they have to come in above full price, offer an appraisal gap in the double digits and then hope that the other buyer isn’t playing with full cash. REALTORS far and wide are writing 8-10 offers for their buyers only to have buyers give up and try to rent for another year. Anytime a buyer decides they want to put in an offer its like getting into the ring with Mike Tyson, you are going to get pummeled.
With over 2.7 million mortgages in forbearance and a moratorium placed on foreclosures there seems to be little relief on the horizon. As we shed millions of jobs a month in losses the housing economy is once again shrugging that off. There is no good news in regards to the actual economy. The FED continues to offer TRILLIONS of dollars in relief while balancing the inflation fears and economic fears. With so much printed money, far more than we have ever tried to print, there is no telling what the economy will do as we move forward. It seems the real balance now is trying to avoid inflation and manipulate interest rates.
We are in a new era. These tactics have never been uses by the FED like they are now and the more money that gets printed the higher the stock market goes and housing. Are both in bubbles? I have no idea, but I can tell you if inflation takes off and the only cure is higher interest rates to try to correct that then we do have real problems. Like in years past, we will have to deal with the market we are in today. So if you are selling it is going to be a great time to cash in on epic appreciation. If you are buying you are going to wish you were not. Let’s see how the year progresses and if we can get new jobless claims under control. If we cannot we will see that ripple through every part of the economy and housing will be the last to likely show it.
I have many interests and hobbies to supplement my busy career in real estate. Although I enjoy my work I also enjoy finding free time to enjoy the most important things in life. This includes being w....