Many potential home sellers are wondering why their home’s value is at an all-time high. They are taking advantage of the perfect time to sell. But why have home prices skyrocketed when just months ago many consumers endured shutdowns with potentially more on the horizon?
Reason #1 Reduced Home Inventory The supply of homes for sale on the market is extremely low. Fears of the pandemic, social unrest, marketplace uncertainty, and new home affordability continue to reduce the inventory of homes. The shortage has dramatically increased the market value of homes for sale today.
Reason #2 Increased Buyer Demand The continued desire to own a home and changes in homeowner needs and wants has increased demand. Millennials unhinged by the pandemic desire to own their first home rather than renting. Many homeowners need additional space to work from home. Considering inventory it has created bidding wars and price increases.
Reason #3 Low Interest Rates Interest Rates have dropped to an all-time low which fuels home prices. Low rates allow first time and move up buyers to purchase more home for the money. Extra home amenities are sought after because they are more affordable.
