It’s no secret we’re in a seller’s market. Low inventory and low interest rates have buyers lined up like kids in an amusement park. In January 2021, the Northwest Ohio Realtors Association published a market update reporting that the average sales price of a home in Lucas and Upper Wood County Ohio was $176,444, an increase of 18% from January 2020.

All of this buzz has homeowners looking to cash in on their #1 investment, their home. Tales of intense bidding wars may have potential sellers seeing dollar signs but there is still trepidation. Recently, I’ve had several people ask me, “how long do you think this market will last?” My answer in the near term is not anytime soon, with rates for a 30-year mortgage averaging 2.9% for the month of February 2021 according to the National Association of Home Builders (NAHB). However, you can surmise that, just like any housing trend, this feeding frenzy is not permanently sustainable.

Selling your home is easy in this market. Finding a new place to live, not so much. This has buyers scurrying for options, like new construction. The U.S. Department of Commerce released figures on permits for new construction at the national level for February 2021, reporting that authorized permits for new construction are up nearly 30% from last year. In recent conversations I’ve shared with two local contractors, they cited high lumper prices and hiccups in the supply chain. According to the NAHB, “lumber prices have skyrocketed more than 180% since last spring.” The result is that people are paying roughly 25% more for a new build and are faced with inconsistencies on completion deadlines due to supply constraints.

What seems to be driving the market is that people are wanting to take advantage of high home prices on the sell side but are uncertain about their next steps on the buy side. The best way to combat that issue is to prepare yourself and have a plan of action. You have to be able to move quickly in this market so having a plan in place before you decide to enter the market is crucial. When you have a plan, you can move swiftly and make decisions with a higher degree of confidence. Having an advocate, like a realtor, can help you formulate that plan so you can make the best decision for you and your family.

sources: www.nworealtors.com; www.nahb.org; www.census.gov