THIS MARKET

It is now June 2021, and the real estate market is still causing quite the buzz, not only nationwide, but globally.

Why?

Two reasons:

1) Covid 19 aftermath

2) Low Inventory

When Covid 19 shut down most of America in the Spring of 2020, no one really knew how that would impact the real estate market. The shutdown caused many businesses to halt, some to pivot, and some to continue operating as usual. The latter, were mostly independent contractors, such as real estate agents, contractors, health care workers. The businesses that had to pivot, involved large corporations. This meant that workers were expected to keep working, but now, work from home.

Working from home oftentimes required a homeowner to not only have the technology resources at their fingertips, but privacy, to make those business calls, while home schooling children, caring for sick family members, and aging parents.

What did this do to the real estate market? It now pushed the average homeowner out of the space they had. They now needed larger rooms, more outlets, additional space for kids and pets, and an environment that made them feel inspired.

By August of 2020, the market saw an increase in purchase price nationwide; and began to feel the shift to a strong sellers market. Buyers were in bidding wars, and sellers were taking advantage of the supply and demand situation that Covid 19 caused.

However, by mid March of 2021, the real estate market saw the bigger picture - almost no inventory. The single family homes were in very short supply. In RI, the average number of sfm homes for sale in a given week was less than 500. Compared to previous years, where the average was between 1000-1500.

What was noticeable, was that the median price point increased significantly, as buyers were now willing to pay as much as $50k+ over the List price. This has caused a major readjustment in the current market. The fair market value of a single family home no longer means a comparison to sold criteria. What it means is, that fair market value is the price a ready, willing, able buyer is willing to pay.

So, what does this mean for a Buyer in today’s market?

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