March 2021: What is Going On In The Real Estate Market?!?
on Tuesday, March 9th, 2021 at 1:18pm.
Every week I create a detailed analysis for our sales team and investor group to stay ahead of the market and always keep our clients one step ahead of the competition. The average sale price of a home in Brantford is up over $215,000 in the past year.
Fueling the fast-paced, aggressive market is the lowest number of homes for sale I have ever seen, combined with the lowest mortgage rates on record. Buyers are also shifting from more expensive markets into more affordable communities - ironically driving the prices up. Throw in a pandemic and changing needs of homeowners, and you can start to understand what's happening.
You can see a shift in the market's pace around July of last year when the average sale price became equal to the average asking price as buyers became more and more aggressive. This year started with the lowest ever number of homes for sale I have ever seen (there were only 50-60 homes for sale through December-January.) With multiple willing buyers for most properties on the market, the bidding wars reached new levels in January and February, where the average sale price was $75,000 over the asking price.
Seller's asking prices, so far in 2021, seem to have no pattern or reason other than to attract attention to the property. When buying or selling, we must research each home separately to understand the fair value and, more importantly, what the winning bid will be. What happens next? Well, I was through a cycle like this before in 2017. As the inventory starts to grow naturally in the spring market, the aggressive bidding wars should slow down, and spring sellers will also raise the asking prices as everyone adjusts the new 'market value.' If demand continues to match the supply of homes coming on the market in the spring, these conditions could last all year (or until some other adverse economic event).
The crazier the market is - the more critical it is to work with an experienced Realtor who knows how to win in this market. Send me a DM, and I'll connect you with a top agent in your city.