Market-Watch Mar 2021

Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers.

If you’ve given even a casual thought to selling your house in the near future, this is the time to really think seriously about making a move. Here’s why this season is the ultimate sellers’ market and the optimal time to make sure your house is available for buyers who are looking for homes to purchase.

The Current Inventory Report above shows the inventory of houses for sale is extremely low for Fergus Falls, sitting at just a .59-month supply at the current sales pace. In my five years as Realtor, I’ve never seen it this low.

The chart above shows an historical months supply of inventory since 2008. This data includes all of the Lakes Region Association MLS (not just Fergus Falls) but we can see the trend. Each year fewer and fewer homes are for sale on the market. In the last four years we have definitely been in a sellers’ market.

When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. As a result, competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.

What is interesting is that last year’s sales outpaced 2019 sales. And now in 2021, we show a 48.3% increase over the same time last year. That means buyers are out there looking and are purchasing homes even though there is not much to choose from. Buyers are actually competing for homes and multiple offers are commonplace.

Prices are going up. You can get more from your home this year than you would have last year. The median sales price average for the past 12 months is $194,171 compared to the prior 12 month figure of $177,006. (LRAR March 2021 Report) This is a 9% increase.

As home prices rise, sellers are in the best position to negotiate deals that meet their ideal terms. If you put your house on the market while so few homes are available to buy, it will likely get a lot of attention from hopeful buyers.

Another reason to consider why selling your house now rather than later makes sense is the interest rate. Rates are up from 2.65% in January to just over 3% in the past month. A low interest rate keeps buyers in the market. While most expect the interest rate to stay low, one never knows what the future holds.

Today, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live – and they’re taking action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.

Bottom Line

Home prices are appreciating in today’s sellers’ market. Making your home available over the coming weeks will give you the most exposure to buyers who will actively compete against each other to purchase it.

Give me a call, a text or an email message if you’d like to discuss further why this is such a great time to sell a home. I will gladly come to your home to have a look, to share what other similar homes have sold for in Fergus Falls, and to let you know what I will do to help sell your home.

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