The Mountain News:
Area Events, Real Estate & Market Trends

The housing market made an incredible recovery in 2020 and is now positioned for an even stronger year in 2021. Record-low mortgage interest rates are a driving factor in this continued momentum, with average rates hovering at historic all-time lows.

According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR), buyer demand across the country is incredibly strong. That’s not the case, however, on the supply side. Seller traffic is simply not keeping up. Here’s a breakdown by state:

As the maps show, buyer traffic is high, but seller traffic is low. With so few homes for sale right now, record-low inventory is creating a mismatch between supply and demand.

NAR also just reported that the actual number of homes currently for sale stands at 1.28 million, down 22% from one year ago (1.64 million). Additionally, inventory is at an all-time low with 2.3 months supply available at the current sales pace. In a normal market, that number would be 6.0 months of inventory – significantly higher than it is today.

What does this mean for buyers and sellers?

Buyers need to remain patient in the search process. At the same time, they must be ready to act immediately once they find the right home since bidding wars are more common when so few houses are available for sale.

Sellers may not want to wait until spring to put their houses on the market, though. With such high buyer demand and such a low supply, now is the perfect time to sell a house on optimal terms.

Bottom Line

The real estate market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.

If you’re one of the many homeowners thinking about taking your house off the market for the holidays, hang on. You definitely don’t want to miss the great selling opportunity you have right now. Here’s why this month is the optimal time to make sure your house is available for holiday buyers.

The latest Existing Home Sales Report from The National Association of Realtors (NAR) shows the inventory of houses for sale has dropped to an astonishing all-time low. It now sits at a 2.5-month supply at the current sales pace.

Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market, in which there are enough homes available for active buyers (See graph below):

When the supply of houses for sale is as low as it is today, it’s much harder for buyers to find homes to purchase. This means competition among purchasers rises and more bidding wars take place, making it essential for buyers to submit very attractive offers.

As this happens, prices rise and sellers are in the best position to negotiate deals that meet their ideal terms. So, if your neighbors decide to remove their listings this season, your house may quickly rise to the top of a holiday buyer’s wish list if you stay on the market.

Today, there are many buyers who are ready, willing, and able to purchase. Record-low mortgage rates and a year filled with unique changes have prompted buyers to think differently about where they live and to take action. The supply of homes for sale is not keeping up with this high demand, making now the optimal time to sell your house.

Bottom Line

Home prices are appreciating in today’s sellers’ market. Making your home available over the next few weeks will give you the most exposure to buyers who will be actively competing against each other to purchase it.

North Georgia is a picturesque area filled with beautiful mountain ranges, calm and quiet waters, and tranquil forestry. The rich history of the area offers its own unique American history and the neighborhoods provide friendly, small-town hospitality. 

If you’re missing putting your green thumb to use during the winter months, there are plenty of cold-weather gardening projects that can keep you at your craft long past peak season. In fact, the preparations you make during winter can be a critical part of having a successful garden come spring. Use this time to complete the following tasks recommended by gardendesign.com:

Prepare plants for harsh conditions. Frost and winter winds can dehydrate and wreak havoc on plants. Protect newly planted shrubs and trees, along with established evergreens, from harsh conditions by enclosing them in shrub covers or wrapping them in burlap. Add materials like straw and dried leaves for an extra layer of insulation.

Plan for spring. Winter is a great time for planning. Use pencil and paper—or your favorite app—to map out your garden beds for spring. Order new plants online or from catalogs so that they arrive at the perfect time for planting.

Prune. The best time to prune many trees and shrubs is late winter while they’re still dormant. If you have late winter or early spring blooming plants, however, don’t prune them until after they’ve flowered. Do your research to find out when is the best time to prune the particular varieties you have in your yard.

Keep an eye on branches. If you’re prone to bad weather during the winter, be sure to surveil your trees after every storm. Promptly remove broken or dead branches.

Relocate plants. Winter is the perfect time to replant large trees and shrubs, but wait until after the leaves drop so it will be less stressful for them. Ball and burlap the roots and move the plant its new location while it’s still dormant.

You can round out your cold-weather green-thumb projects by cleaning and storing your outdoor tools, repairing and repainting your outdoor furniture and covering tables and large chairs with outdoor furniture covers. These activities will keep you connected to your yard all year long, and have you ready to fully enjoy your garden come spring.