If anything good came out of 2020 it is the impact that the year’s events have had for today’s home seller. Lack of available inventory and pent-up buyer demand are driving home prices to an all-time high. 

Flashback to March of 2020. While a home with proper pricing and exposure will sell at any time of year, the spring season finds the majority of buyers and sellers taking action. In March 2020 there was a ready, willing and able buyer pool. Buyers anticipated an onslaught of new homes to be listed. The Coronavirus got in the way of real estate business as usual. Instead of the seasonal influx of new properties the pandemic caused an immediate slowdown in new properties being introduced to the market resulting in a historically low level of inventory. Available homes for buyers became as sparse as paper towels and cleaning products on grocery store shelves. Both buyers and sellers spent much of 2020 in limbo. With 2021 starting off with a reduction of positive Coronavirus tests and vaccines finally available, the real estate market is back in full swing. The buyers that were ready in Spring of 2020 are STILL ready and many now have an additional year’s worth of income and savings for down payments. Add to those already planning to purchase a home in 2021 and the result is unprecedented buyer demand.

A deluge of sales toward the end of 2020 with buyers snatching up properties in record time has led to an impressive rebound. With interest rates remaining low and buyer demand high there has never been a better time to sell a home. This is supported by statistics released by Realtor . Com. National inventory declined by over 48% over last year and the inventory of newly listed properties declined by over 24%. Last year at this time there were 34 single family homes for sale in Natick with a median price of $854,500. At the time of this writing there are just 16 single family homes for sale in Natick and the median price has increased to $952,000.

Right now it is common to receive thirty to forty or more showing requests when a new property is introduced to the market. Multiple offers from qualified buyers ...sometimes 10 or more! Competitive buyers are doing whatever they can to get their offer accepted. Submitting bids well over asking price, waiving inspection and mortgage contingencies; anything they can do to improve their chances. Sellers should be careful to consider the complete offer: price AND terms, and not be blinded solely by a large number which will ultimately mean nothing if the deal does not move through to closing. Sellers are realizing that there will be a moment in time when inventory will increase and added competition will contribute to the leveling of list prices. Some home owners that had not been considering a move in 2021 are changing their minds. There may never be a better time to take advantage of the lack of supply and huge buyer demand making this the strongest seller’s market I have ever seen. 

John McHugh is a Senior Associate and has been with Coldwell Banker for twenty years. He can be reached at [email protected] 978.902.5646