Three things to watch that will effect inventory in 2021. Snohomish and Skagit counties have been in a frenzied seller's market for years! Nothing seems to be stopping it, not even Coronavirus. IF YOU'VE BEEN MARKET WATCHING FOR A BUYERS MARKET here are three things to watch closely that will help you to see if the market will turn to a buyer's market in 2021.
1) Interest rates. If the interest rates rise over the coming months home buyers monthly payments will go up, which in turn will limit the number of buyers that can afford to purchase. This means less buyers for each home on the market, a slowing of multiple offer situations, and eventually a buyers market that will swing the negotiating power over to the buyer. CURRENT CONDITIONS are the fed is stating the rate will NOT go up significant and we may even see lower interest rates in 2021.
2) Foreclosure/Eviction moratorium. Currently Washington state has a moratorium on foreclosures and evictions through 3/31/2021. As of November 2020 foreclosures were at 6.33% of US homes in foreclosure. This is over 3.3 Million homeowners behind on their mortgage payments (stats Black Knight Mortgage Monitor) https://www.blackknightinc.com/data-reports/?report-type=mortgage-monitor&report-year=2020. This is a large wave of potential foreclosures and has buyers and real estate brokers watching to see if the moratorium is extended. If it is not, then expect to see a remarkable rise in the numbers of homes on the market as sellers attempt to sell and recoup equity or as banks foreclose and REOs (foreclosures) hit the market. CURRENT CONDITIONS moratorium is expected to be extended again perhaps into the fall of 2021.
3) Unemployment/Wages/Stimulus. Money flow is crucial to the housing economy and if unemployment does not recover, wages go down, and those unemployed or with lowered wages won't be buyers in the housing market. Stimulus checks are often being invested and some into real estate. If stimulus continues it definitely plays a part in whether or not the housing fury will continue. CURRENT CONDITIONS unemployment numbers went up in December with lockdowns and more stimulus is anticipated.
If you would like a current state of the market for your home or area just reach out. We are here when you need us. : )