Inventory is at a historic low, which is very challenging for buyers. The saving grace is that interest rates are also historically low. Prices are up a staggering 17%, but with the low interest rates monthly payments have only increased 3%. For most buyers, it’s all about monthly payment because you live in the payment not the price. Interest rates impact affordability more so than purchase price.
December had 49% of the homes sell with multiple offers. That is crazy for a December! December 2019, which was a busier than usual December, had only 18% of the homes sell with multiple offers. January appears to be off to its typical fast start—more on the seasonality of our market next week. Bottom line, sellers should get their home on the market ASAP and buyers should stay patient and calm as they navigate this competitive arena.