Inventory continues to be low, but that has not stopped the activity of buying and selling homes. January had more pending sales and closed sales compared to January of 2020, with strong price appreciation. All this activity has happened with record low inventory levels – this means people are still looking to move and buy. Winter historically has lower inventory, but the months supply of inventory is down 45% from the same period the prior year.
Overall the year has started off strong for the housing market, with healthy buyer demand. If you are considering selling, now is the time to start talking with a professional about the process and timing. Homes are selling, often under multiple offer situations, and in January averaged 99.9% of list price.
Jackie, what about the economic impact of the pandemic and foreclosures?
“The Mortgage Bankers Association’s January research estimates approximately 2.7 million homeowners with mortgages are currently in forbearance plans. Some of these homes may eventually come to market, but given the strong appreciation in most market segments in recent years, these eventual home sales are likely to be mostly traditional sellers. However, a modest increase in short sales and foreclosures at some point this year would not be surprising.” St. Louis REALTORS®
This means, if anyone is at continued risk of not making their mortgage payments, they are a lot more likely to list and sell their home under the traditional listing process to avoid foreclosure.