The Takeaways

Inventory Remains Low while Sales Price Stays High

As you've probably heard over the last 6 months, the real estate market is hot! But let's take a deep dive into the numbers to see what "hot" really means statistically. 

We're seeing a massive influx of active buyers for 2 reasons. Reason #1, rates are extremely low!  Reason #2, COVID has altered the workplace. The majority of businesses have moved their employees home to work remotely. With day-to-day commutes being out of the picture, many people have broadened their home search. We used to hear, "I need to be within 20 miles to Boston", but now we hear, "I work remotely so I can practically live anywhere". This change is huge for New Hampshire towns that people commonly overlook due to their proximity to Boston. 

Every month in 2020, the median sales price year-over-year change has increased. We've seen the most considerable year-over-year change this January at a 22.8% increase! For sellers, you have equity!!! Act on it!

Inventory has been our biggest problem. Since COVID hit, we've seen anywhere from a 25-63% decrease in inventory. Of course, this creates an issue for the numerous active buyers and results in multiple offers and bidding wars. But, this doesn't mean that people aren't selling. It just means that homes are selling so quickly that there are very few homes that linger on the market. If we look at the number of New Listings, we saw an increase in the year-over-year change in Sep, Oct, Nov, and Dec. 

One key metric we agents use to measure inventory is Months Supply, which tells you how many months it would take for all the current homes for sale to sell. In a "balanced" market, months supply is between 4-5 months. Currently, we are at 0.7. That's a historic low and truly captures the disproportion of active buyers to sellers. 

A note to sellers. I don't have a crystal ball, but as an agent who has lived through pre and post 2008 recession, I foresee a lot of listings coming on in the next few months! We missed the spring market last year due to COVID, so this year I predict it will be more active than ever. Don't wait. Be the big fish in a small pond, not the little fish in a big sea. NOW is the time to sell. If your fear is where to go next, let's have a chat! We can help navigate your next steps. 

A note to buyers. In a competitive market, you need to enlist the help of an agent who will get you in that new listing right away and get your offer accepted. You don't deserve a good agent, you deserve a GREAT agent, and we have them here. Send us a message and tell us more about your home search. We'd love to help get you to the closing table!