Are Multiple Offers Still the Norm?
Despite rising mortgage rates, multiple offers are still prevalent according to the March Realtors Confidence Index Survey. In this survey, Realtors reported an average of nearly 5 offers on each home that sold in March. Home buying demand is still outpacing supply. The shortage of homes for sale will continue to make this a competitive market for buyers. Gay Cororaton, research economist at the National Assoc. of Realtors, writes “…properties typically stayed on the market for a shorter time compared to one year ago, at 17 days on the market. Eighty-seven percent of listings were on the market for less than one month.” In NH thru March 2022, homes typically stayed on the market for 34 days.
How tight is the inventory? At the end of March there were 950,000 homes on the market, equivalent to a 2 months supply. A normal market is about 6 months - meaning the inventory of homes on the market should be at 2.9 million. Doing simple math, there is a shortage of about 2 million homes for sale in the US. Due to this tight supply, the National Assoc. of Realtors expects prices to continue to appreciate by about 5% by year-end. If you are looking to buy or sell, contact me to help you navigate the complexities of this market!