When Will The Seller's Window Of Opportunity Be Closing?
There's no denying the fact that the coastal Delaware and Maryland real estate markets are red hot right now, but it's also very much a seller's market at the current time.
A big part of that is due to depressed inventory levels, not only in the coastal region but throughout much of the mid-Atlantic and even beyond.
"How much longer can this last?" It's definitely a question that's on people's minds right now and one that we're getting a lot in the offices of the Oldfather Group, particularly from homeowners who are on the fence about whether or not to sell.
Nobody has a crystal ball and thus that question can't be answered with any degree of certainty. We can all make our best guesses and that is, in fact, what happens most of the time when it comes to real estate trends and forecasts.
So what's our best guess as to when this seller's window of opportunity will close? Take a listen as Oldfather Group Founder and CEO Dustin Oldfather tackles that question in the short video clip below.
The coastal real estate markets have been moving ahead at a blistering pace these last few months, with many sellers receiving multiple offers and settling for amounts higher than their original asking price.
We expect this to continue in the short term, but all markets are cyclical and this will inevitably come to an end as more of the public becomes vaccinated against coronavirus and things return to normal across the region.
Interest rates are also probably going to be bouncing around for the rest of the year, which could also temper some of the current excitement and allow inventories to get back to better levels.
But as Dustin mentioned in the above video, there are a few reasons why we're witnessing the current environment in our local, regional and even national real estate markets.
- The coronavirus pandemic has caused many homeowners to stay put for the time being, both because they don't want the hassle of moving and also because they're worried about having showings in their homes.
- More people are now working at home due to restrictions brought on by the pandemic. This means people want to have larger work spaces in their homes, while also enjoying their lives as much as possible within that home.
- New construction has been constrained because of rising lumber prices, as well as other costs like HVAC systems and plumbing.
All of these factors are restricting inventory levels and creating the seller's market that we're definitely seeing today at the Delaware and Maryland beaches, and really throughout the mid-Atlantic.
We do expect some loosening over the course of the next few months, as well as a good deal of excitement in the marketplace once the vaccine rollout becomes more widespread and people become more comfortable returning to their normal lives.
When that does happen, after more than a year of dealing with a worldwide pandemic, we also expect to see renewed optimism, both in terms of regular life and as it relates to real estate.
We're certainly all looking forward to that and we hope you are too!
Have a great week everyone!