YES! Interest rates are still low (July 2021 rates dropped to 2.9%) , and supply is still low. It’s a basic supply and demand dynamic at play right now. There is no anticipated flood of homeowners coming to market to change the supply side, it’s just going to be more of the same. Waiting is just going to cost buyers more money.
Local Economist Steven Thomas, Quantitative Economics & Decision Sciences says this: "Today’s housing market is glaringly different from the run-up to the great recession. The housing stock was built on the backs of easy credit, pick a payment plan, subprime lending, zero downloads, easy qualifying, and fraudulent lending. Prior to the bubble deflating there were obvious signs of a pending housing collapse: way too much supply of available homes to purchase and diminished year over year demand.
Today, it is not easy credit that is the catalyst to the highest appreciation on record. Instead, buyers must qualify for loans and prove they can afford the payment.
The current housing boom is due to supply and demand. There are just not enough available homes to purchase. Supply is low. It is 33% less than last year’s level of available homes for sale. It is 56% less than the 3 years average from 2017 to 2019.
On the demand side of the equation, it is elevated due to low interest rates combined with the strongest demographic patch of first time home buyers in decades. Even as values rise, homes are still affordable when factoring rates and incomes.”
The real issue is lack of supply and demand!
Buying or selling, we never double end a deal and have a team ready and waiting to help our clients on both sides. Give us a call if you are thinking of either and we can guide you where you need to go.