Skip to main content

What to Expect in the 2021 Spring Market

 If you are just starting to think about buying or selling this year, its worth taking a moment to get familiar with the covid-era market. Its a bit crazy out there.... 

Zillow has recently noted that the greater Philadelphia area is seeing a 10% increase and will continue to do so this Spring and potentially into the next year. 



On the Buy-Side 



If you are a prospective buyer, be ready for a difficult market. Inventory was short before the pandemic. Often, on desirable properties, we would see 5-15 offers on a home. Multiple offer scenarios were certainly a common scenario. But then came covid, market falls and thus, record-low interest rates. At first, with the real estate market closed for business, we only began to see interest drive up. People were still unsure about going out into the world and sellers were weary of putting their homes on the market. But as time went on, and interest rates remained low, the market heated up. 

When 2021 began, things got particularly rough. January was brutal, and not just with the snow. Rates were so low that the market was absolutely flooded with buyers. With what was almost-free money, everyone wanted to buy. Everyone. Many homes, even normally less-desirable ones, were going under contract within days, if not hours, drastically above asking and many with over 20 offers. 

Recently, interest rates have gone back up to a more pre-covid level. Still, wonderfully low right now, it may disinterest some buyers or even cut out a few from being able to afford a home. What we continue to see in the current hot-market areas is steady competition. 

Within multiple offer scenarios, expect to see your competition potentially offer cash, likely waive inspections, agree to pay cash over appraised value, etc. For the risk-adverse, this isn't an ideal market in which to purchase. But, inventory is starting to accumulate in many places and there are certainly areas where homes aren't as competitive. Just be sure to outline exactly what your level of risk is ahead of getting into a multiple offer scenario, know the pros and cons of any decision and don't get caught up in the moment and get cold feet with an accepted offer. 


On the Sale-Side 



Welcome to the dream market! If you aren't insane with pricing your home, and there isn't anything completely odd about this property (like they are digging up an old graveyard in your backyard), now is the time to get the most amount of money for your home. Sure, some homes are still sitting, be it from poor pricing, a particular oddity or lack of desirability, but if you have an average home in a market that is seeing movement on most properties, its an incredible time to sell. 

That being said, most people who sell a home need to find a new one. In this market, as noted above, that might be difficult. Have a plan in place in case you need to move out of the old place and have yet to secure a new one. That might be a rental, short term housing, airbnb, or renting back your home from the new owners. 

Also, while there are plenty of fixer-uppers that go quickly off the market, its still advisable in this market to put your best foot forward. Minor cosmetic upgrades, staging and small repairs may make for sizeable return on investment in this competitive market! 


Comments

Popular posts from this blog

Accessibility in Good Design

 I've been impressed lately with some of amount of accessible design features I've seen around as of late. By "accessible design", I mean home decor, renovations and design that is accessible to those with a physical impairment or disability.  First I noticed that back in March, Better Homes and Gardens did a great feature on a home designed with a wheelchaired child in mind.  Yes, it was a rancher and mid-century modern in design so it leant itself to move open-flow and clean line design. But even if this isn't your style, there were some great ideas here!  Check it out here  Then I saw Southern Living did a great home build with "adaptive design" in mind. This was a great feature because it reviewed new construction and slight changes in thinking to make just a welcoming, easy access home for all guests.  As noted in the article,  " If you’re going to be a good host, particularly from the Southern point of view, where we’re all about hospitality,

Philly Designers To Follow - Round 2!

 Two years ago I posted this list, rounding up some of my favorite local designers to follow (or hire!). Honestly, still in love with all of these designers and love seeing their businesses grow!  But I wanted to share a few more local designers to check out in 2022!  Crisco and Frisco  Via I actually just recently came across these two but am really interested in their work. A lot of its very modern and trendy but they seem to add something unexpected in all of their work and I LOVE that. Its so easy to get formulaic when your clients see something and want it, so they seem to have a fresh eye for adding uniqueness to that formula.  (I mean that tile combo!....)  Twelve Chairs Interiors The patterns! Ah! They know how to balance color and pattern with very tailored looks. Love it! I have a special place in my heart for their 1840 Greek Revival project in West Chester (PA)  Bare Root Design  Based in Bucks County, they feel very true to their location, with a key understanding of elev

Those pesky extra rooms...

Ok, its a pretty first-world problem, but there plenty of people who live in suburbia (or even in the city!) who have a room or two that they just don't use. Often, its a formal dining room or extra bedroom, but if you are the owner of such a room, you may wonder why you are paying for so much unused space! Today, I'm walking through some of the best uses of dead space in your house and how to make it you new favorite room! The Formal Dining Room This is the most commonly "complained-about" space in the suburban home. While we still like to entertain, a lot of people aren't crazy about a whole, extra, (often large) room thats only used on a handful of occasions throughout the year. Unless you have family dinners there, this is likely a space that you are taxed on & heating that sits vacant 350 days of the year. One of my personal favorite ways to reuse this room is to use it as a craft/workspace. The room can keep a large dining table and chairs that