February 28, 2021
We Live in a Place of Amazing Beauty, but for Homebuyers, This Crazy Market May Feel Anything But “Beautiful!”
Last week’s blog focused on what homesellers should expect as we move through the first quarter in the year. So today, we will flip the coin and hopefully, add value to those in the homebuying process as they attempt to make sense of this white-hot, seller’s market.
Here are five expectations for 2021 homebuyers to keep in mind as they engage in that search for the elusive next home…
1. Slim Pickings Early on
The average homebuyer in 2020 had to deal with an inordinate amount of delays, obstacles, and stressors. If you’re looking to this year as your golden opportunity to search the listings and find your dream home, here’s what Northern Colorado homebuyers can expect from the real estate market in 2021.
The last year saw scores of otherwise motivated sellers deciding to either delay putting their home on the market until things felt more stable, or looking into refinancing for the long haul.
As time has marched on, both buyers and sellers have grown more accustomed to the “new normal” of day-to-day life under COVID precautions, and this has translated to an increased confidence in the real estate market.
Most Northern Colorado cities are starting off 2021 with a lower-than-usual number of homes listed because of this lack of the uncertainty spanning most of 2020. Do keep in mind that this is certainly going to change as time goes on.
To illustrate the “slim pickings” statement, I’ve included the Active Listings chart below from last week’s blog, compliments of the Fort Collins Board of Realtors®️. Note that listing in January 2021 are down nearly 60% from the same month in 2020! That is astounding and will affect what buyers are finding in the marketplace.
2. The Springtime Boom
Every year, real estate agents are accustomed to a large influx of buyers and sellers once the winter weather has subsided a bit and everyone is more ready and willing to get outside.
This year, we are expecting a much bigger jump in market activity as the spring approaches, but it’s still a great idea to keep your eyes peeled for amazing deals that may surface through March.
Some sellers have been keeping their property on the market in hopes of finding a very motivated buyer, while competition between sellers is lower. Keep in mind, if the inventory is only 40% of what is was a year ago, sellers have less competition, which will typically mean higher prices. If you’re a buyer, “Come on Spring” is likely your mantra!
3. Home Values to Increase
Due to the inventory of for-sale properties being low over 2020, sellers were not only able to ask for a premium, but in many cases, had their choice of offers during bidding wars! Right now, it’s not uncommon to see houses sell for more than asking price, sometimes by $20,000, $30,000 or more!
There is an overwhelming sense of anticipation right now that home prices will not only sustain this elevated level, but will in fact continue to advance even further over 2021.
Note: It’s going to be important for any buyers to avoid getting too attached to a specific property so they can be ready to walk away if negotiations start to get out of hand.
With this heightened volatility, it is thoroughly recommended that all buyers engage a qualified and experienced real estate professional to handle the details of negotiation on their behalf.
4. Buyers Are Prepared
As the market heats up in the spring, we will begin to see even more buyers arriving on the scene; those who have been assessing the market and waiting for the chance to find the new home they were assuming they would find a year ago.
The choice to put a hold on their house search means they spent the last year building up their savings and possibly cleaning up their credit. The competition between buyers, agents, and lenders will be incredibly high in an already hot market, and you will want to set yourself apart as much as possible.
This could entail committing a sizable earnest money payment or let go of a lesser contingency to close the deal, or forego inspections. Anything to sweeten the deal and make it as “clean” an offer as possible, is a step in a good direction.
The importance of getting pre-qualified with a lender cannot be overstated. If you find a home that is appealing and want to write an offer, your agent will want to submit your pre-qualification letter with the offer. Today, if you find a home on Saturday and think you will talk with a lender on Monday to get pre-qualified, in most cases, that home will have passed you by.
5. Bucking the Usual Trends
If there’s one through-line you can clearly pick up on, it’s that the real estate market in 2021 is primed to throw everyone a curveball or two. If we learned anything from 2020, it is “be ready for the unexpected!“
The typical speeding up in the spring is going to be much more abrupt, pricing may be less consistent, and both agents and lenders are going to have their work cut out for them. This is why it’s imperative you enlist the help of a professional to keep your home buying venture on task and out of trouble.
Your Partner in the Real Estate Market in 2021
If you are looking to enter the Northern Colorado real estate market in 2021, contact me today at 970.820.0969, or email tavery@c3-re.com, or complete the short form below for a prompt response!
Whether you are buying or selling, here are a few resources you may want to consider:
- CMA – If you’re thinking of selling or simply would like to know your home’s current value in this market, I am happy to complete a Comparative Market Analysis specifically for your home at no charge or obligation.
- If you would like to see what home prices did in your neighborhood and city in 2020, I am happy to send you the 2020 Single-Family-Residence Sales Report, broken down by city and subdivision.
- Sellers – If you are even entertaining the idea of selling in 2021, I would suggest you read a copy of my book, “Selling Secrets You Can’t Afford to Miss!
- Lenders & Buyers – If you are considering buying in 2021 but are unsure where to turn for reputable lenders, please let me know. We work with many outstanding lenders who are experienced in all the programs available in Colorado. They can walk you through the pre-qualification process quickly and get you on the road to searching for your next home!
- Property Marketing Plan – At C3, we understand the importance of effective marketing. It’s essential element in getting your house in front of the right buyers, then sold quickly and for top dollar! If you would like a copy of my personal Property Marketing Plan, just let me know!
- Property Marketing Plan – at C3, we understand that outstanding marketing is an essential element to your home being seen by the right people, then selling quickly and for top dollar. If you would like a copy of my personal Property Marketing Plan, just let me know!
These resources are all complimentary, so simply let me know which you would like by completing the form below and entering the desired resource[s] in the Comments box!
