Are we going to see inventory levels go up in 2021 and how will this affect the market? Hi I’m Tanja Odzak-Goppold with Keller Williams. I’m a top producing agent in Oakland and the Greater East Bay Area… and I have never seen inventory levels this low. Ever!! What does that mean for a seller and a buyer? Lower inventory levels cause home prices to go up because buyers are bidding over the list price. So this causes homes to increase at higher levels. It’s great for sellers, but makes it much more difficult for buyers. Homes are getting 14, 20, 37 offers! Which makes it hard for buyers to have their offer chosen, but allows sellers to choose the terms of the contract that are most favorable to them. They are taking factors such as down payment, type of loan, contingencies etc. into consideration when they choose their offer, so buyers are having to come in as strong as possible with their offers. However, The median age of an owner occupant is about 57 years of age. We’ve been told by health professionals that the older you are, the more at risk you are with the virus or having very serious complications. So many older Americans have waited to list their homes, this is one of the factors that has led to the lack of inventory. So it’s believed that inventory levels are going to go up once people feel more comfortable listing their home because they won’t be as fearful of getting sick. Also, Corelogic predicts the turnover rate, which is the percent of houses that sell, in 2021 to be higher than the 20 year average turnover rate.
I hope this was helpful. Check out my YouTube channel for all 4 of the Real Estate predictions for 2021, I’m Tanja Odzak-Goppold, Reach out any time for anything as I’m always here to help. PUTTING PEOPLE BEFORE PROFIT