Current State of the Housing Market: Overview for mid-March

The housing market is highly competitive as of mid-March due to a combination of low inventory and high demand. With fewer homes available for sale than in previous years, many buyers are competing for the same properties, leading to bidding wars and multiple offers in many areas. This has driven up prices, with some markets seeing double-digit price increases over the past year.

Meanwhile, demand for homes remains high, fueled by low mortgage rates and a desire for more space during the pandemic. This combination of low inventory and high demand has made the housing market highly competitive, particularly for buyers who are looking for affordable homes in desirable areas.

An Overview Of The Current State Of The Housing Market As Per Midmarch

Low Inventory

The housing market continues to suffer from low inventory, with fewer homes available for sale than in previous years. This has contributed to a highly competitive market, with multiple offers and bidding wars becoming common in many areas. HIGH

Demand

Despite the low inventory, demand for homes remains high, fueled by low mortgage rates and a desire for more space during the pandemic. This has driven up prices in many areas, with some markets seeing double-digit price increases over the past year.

New Construction

Builders are struggling to keep up with demand for new homes, with shortages of labor and materials contributing to delays and higher prices for new construction.

Mortgage Rates

Mortgage rates remain near historic lows, with the average rate for a 30-year fixed mortgage hovering around 3%. This has helped to keep affordability relatively high, despite the rise in home prices.

Foreclosures And Evictions

While many homeowners have been able to weather the pandemic with mortgage forbearance and other forms of relief, some experts predict an increase in foreclosures and evictions later in the year as relief programs expire.

Remote Work

The current state of the housing market has led to a shift towards remote work, which has caused many people to reconsider where they want to live. This has led to increased demand for homes in suburban and rural areas, as well as areas with lower housing costs.

WHAT MAKES THE HOUSING MARKET COMPETITIVE?

Low Inventory

When there are fewer homes available for sale than there are buyers looking to purchase them, it creates a competitive market. This is because buyers are competing for the same properties, which can lead to bidding wars and multiple offers.

High Demand

Demand for homes can be driven by a variety of factors, including low mortgage rates, economic growth, and changes in lifestyle. When demand for homes is high, it can make the market more competitive, as buyers are competing for the same properties.

Desirable Locations

Properties in highly desirable locations, such as those with good schools or easy access to amenities, can also create a competitive market. This is because buyers are willing to pay a premium to live in these areas, which can drive up prices and make the market more competitive.

Affordability

In some markets, there may be a shortage of affordable homes, which can create a competitive market for those properties that are priced within reach of buyers.

Overall, the housing market remains highly competitive and challenging for many buyers, with low inventory and high demand pushing prices up in many areas. However, low mortgage rates continue to make homeownership relatively affordable, and builders are working to keep up with demand for new construction. As the pandemic continues to evolve, the housing market is likely to remain in a state of flux, with the potential for both challenges and opportunities for buyers and sellers alike.