Friday, September 10, 2021 / by Breanna Thornton
There has been a lot of data taken over the years for the real estate market. This data has produced some numbers that experts would label as “normal.” Certain aspects like mortgage rates, number of offers and others have a standard when market conditions are in their typical state. The purpose of this post is to help you get a better idea of how the current market is in relation to the usual real estate market.
1) Mortgage Rates
Freddie Mac has average mortgage rates for every decade since the 1970’s.
Today’s mortgage rate is 2.87%, which is drastically lower than any other rate recorded by experts. This shows us that the mortgage rates are not like the normal rates.
2) Home Appreciation
Image from Mortgage Explorer
An expert company states that average home price appreciation since 1995 has been around 4.14%. Forecasts for this year from the National Association of Realtors show that price appreciation is supposed to hit about 14%. This jump in prices is definitely outside of the “norm.”
3) Months Supply of Inventory
The months’ supply of inventory basically translates to the amount of homes for sale. It also means that it is the amount of months it would take for all the current homes listed to sell within the current market. A usual market has about a six months supply of homes. Right now, the months’ supply is 2.6 months, which is less than half the usual. The amount of buyers in the market is causing this number to decrease, but listings are starting to go up more and more!
4) Days on the Market
Image from ShowingTime
The days on the market is how many days it takes for the home to sell. This is an indication of how hot the market is! It is also a quick way to know how fast your home might sell. On average, the “days on the market” is about 35 days. Today, the NAR says the average time is 17 days. Essentially the time on the market is cut in half! This indicates a great time to sell if you are wanting a quick turnaround.
5) Number of Offers per Listing
This indicator can be a frustrating one for buyers since it makes it more competitive. Usually, the average amount of offers sits around 2.2. In today’s market, the average is at 4.5.
Some of these numbers may seem daunting, but there are plenty of opportunities to buy and sell a house right now! These statistics are meant to demonstrate how the market is different than usual. This is why working with an agent will help you immensely with your real estate questions! Reach out to us if you need help with anything at all!
Header image from Central Florida Development Council