As 2021 passes the halfway point, this year is already setting records in home prices and market competitiveness. This is advantageous for sellers, but buyers can also take advantage of these unusual circumstances. If you’re looking at homes for sale in Estes Park, here are four key trends that you should be aware of.
1. Fewer homes on the market
As home sales have skyrocketed recently, the number of homes for sale has fallen to an all-time low. However, as these boom trends tend to go, this means that the market has started trending in the opposite direction already. This summer, newly listed homes are more numerous as the season is going by, which is the opposite of the normal trend during the summer months. For buyers who want to find a new home this summer, this is good news. Despite this trend, the housing market is still in favor of sellers.
2. Increasing home values
The Home Price Index had its greatest yearly increase since 2005, rising by over fifteen percent since May 2020. As home sales have reached record levels, home values are increasing dramatically. This makes real estate a very attractive investment opportunity. Home prices are rising regardless of what region of the country your property happens to be in.
For homeowners, the current conditions provide a good opportunity to make a profit from selling their homes. If you’re trying to find a home to move into or looking at the market as a potential investor, the current conditions could make the buying process more challenging. Professional realtors can help you put together an offer that is more appealing to the seller without placing you in jeopardy of making a bad investment.
3. Increased competition
Lower numbers of home availability and increased demand have caused bidding wars that have dramatically driven up home prices in recent times. Not only are bidders making offers well above the asking price, but some of them are even willing to pay all in cash. This year has seen record numbers of buy offers for homes. According to the National Association of Realtors, five buy offers are made on average for each home for sale.
4. Home equity
The equity of your home can increase due to a number of factors beyond just paying into your mortgage. When your home’s value increases, so does its equity. The current housing boom is also causing record highs in home equity values. If you have life goals that require a loan, this could be the best time to leverage the increased equity of your home to enable a move to a better home or to start a small business.
Overall, the current housing market conditions provide big opportunities for people who own homes or if you want to get into real estate as an investor. To learn more about how you can benefit from these record-breaking trends, reach out to your local real estate professionals for more information.