As we approach the mid point of 2021, we’re settling into what has become the new norm of steady, high demand and record low inventory. Our ability to track the market on a daily and weekly basis allows us to go a layer deeper in our analysis, so let’s do just that.
Around this time last year, we were starting to feel the impact of shelter in place with a dramatic drop in contracts written, followed by a surge in contract activity in the subsequent months.
In contrast, this year, the number of contracts written has been more steadily increasing as we’ve headed toward summer, still carrying forth the trend of high demand. We saw a dip in contracts written during February’s winter storm, yet since then we’re seeing a gradual upward trend coming into summer more reminiscent of years prior to 2020.
Despite stiff competition and rising prices caused by our current inventory shortage, buyer confidence remains high. Continued job growth, relocation, and low interest rates continue to fuel high demand in the DFW metroplex.
The other piece of the puzzle that gives a clearer picture of the market is the number of new sellers putting their homes up for sale. While the number of new sellers coming on the market continues to lag behind years past, we have seen enough growth in recent weeks and months stabilize inventory, albeit at a low level.
So far in May, we’ve had 3 consecutive weeks of over 2,000 new homes hitting the market, which hasn’t happened since August of last year. As a whole, inventory in our market is down 76% year-over-year.
With strong demand and the continued shortage of inventory, any growth in the number of new homes hitting the market is positive, and we’ll be keeping a close eye on the market heading into summer to see if these numbers continue to trend upward.
So, what does this mean for our buyers and sellers?
For buyers, representation continues to be an important factor in finding off-market opportunities and making offers stand out. We’re starting to see some listings with price reductions, particularly at higher price points, which suggests that some sellers may be overshooting the market when deciding on an initial price to list their home. Savvy buyers should keep an eye out for such opportunities, as it can be beneficial to be first in with a fair, competitive offer.
For sellers, a decided advantage exists, yet getting top dollar for your property will be dependent on your agent’s ability to leverage multiple offer situations and create a strategy that doesn’t just list your property for top dollar, but sells it in such a manner.
Our Cash Purchase Program continues to offer sellers a solution when it comes to buying your next property, providing the flexibility to purchase your next home with an all-cash offer prior to putting your home on the market.
If you have any questions about the market or how we’re helping our clients achieve their goals, our team is standing by to assist you!