New Inventory
One common theme we hear around the country is all about the lack of inventory. As COVID fades, chances are many new sellers may emerge in 2021 for the following reasons:
1. Some were fearful of leaving home during a pandemic, health-wise. Looking at new homes and making a move might have been a health risk.
2. Hearing about inventory shortages caused many to fear they may not find a new home.
3. Many sellers are only now hearing about the robust markets and rising prices.....enough to entice them to sell. They may have been fearful of leaving money on the table during a market where a pandemic was in full force.
4. Many sellers did not want strangers in their homes out of fear of catching the virus. Many did not want to disrupt their work-and-learn-from-home schedules. Showings are disruptive.
5. Some sellers simply could not deal with the additional stress of a move on top of all the stress 2020 delivered,
6. Some sellers thought their markets were dead, yet now we have seen many dead markets roar back to life.
7. Some sellers seeing rising interest rates may think this golden window of seller opportunity will not last forever.
8. Some sellers take more time to figure out future plans. 2020 was a great year to think - REALLY think - about your future.....and enact plans in 2021.
9. A rising, heated market can be the PERFECT market for down-sizing. If you sell a $3 million home for a 10% premium, that's a $300,000 premium. Then when you buy a $1 million property and the premium is 10%, that's $100,000. The upside is obvious. MANY potential sellers right now are empty nesters and babyboomers.....10,000 are retiring every day!
10. Nothing lasts forever. Already we can see rising interest rates and bond yields are visibly impacting equity values negatively. The natural forces of economics are pretty powerful and consistent.
SOURCE: Leonard Steinberg