The 5 Reasons Why We Aren’t in a Buyer’s Market

Here are the top five reasons why we are not in a normal buyer’s market. Buying a home? Click here to perform a full home search Click here to search our new construction homes.

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 Today we wanted to talk about the five reasons we are not in our normal buyer’s market:Mortgage rates. According to Freddie Mac, in the 1980s, we saw rates over 12%, but today our rates are at ultimate lows of 2.875%. With those savings, people have been able to buy more and lock in that steady, low rate.Appreciation rates. Black Knight has tracked our average appreciation rate, which has been about 4.14% over the decades. Currently, according to the National Association of Realtors, our national appreciation rates are over 14% which is impacting our market a lot. Home supply. Having a six-month supply of homes is considered a balanced market. As of now, our supply has been very anemic which has made it harder for buyers to get a house.Time on the market. Nationally and pre-pandemic, a home would take 35 days to sell on average in the market. Now, that average is less than 17 days. More offers per home. In 2019, we were getting about 2.9 offers per listing. For 2021, we’ve been getting about 4.5 offers per listing. We’ve almost doubled the number of offers on the average house.All of these reasons come together and create the craziness of our current market. If you have any questions about this or other real estate topics, feel free to call or email us. We’d love to help.