The housing market took off at record speed in 2020 and is positioned for an even stronger 2021. Record-low mortgage interest rates are a driving factor, with average mortgage rates hovering at historic all-time lows. According to Residential Real Estate Sales Manager Tim Taylor of Community Bank in Lake Placid, the 30-year rate can be as low as 2.875%.
Buyer demand in our area is incredibly strong. With so few homes for sale right now, we are experiencing an unbalanced supply and demand. Record-low inventory means sales will decrease. Nationally, the number of homes currently for sale is at an all time low of 1.28 million, down 22% from one year ago. Locally, there are only 26 homes for sale in Lake Placid, and only 4 of them are listed between $200,000.00 and $350,000.00.
What does this mean for buyers and sellers?
Buyers need to be patient in the search process. You may have to wait for the right property at the right price. It will happen, but it could take time. Buyers must also be ready to act quickly when they find a home that fits their needs. Bidding wars are more common when so few houses are for sale. Recently I put Wilmington’s 17 Thrapp Way under contract with nine offers and Lake Placid’s Lakeside 19 at the Whiteface Club and Resort under contract with five offers.
I am encouraging sellers not to wait until spring to put their houses on the market. We have never seen a real estate market like the one we have now. This low supply and high demand market provides an ideal opportunity for those considering selling their homes. My sellers are getting the highest prices and the most favorable terms for their properties.
As always, please don’t hesitate to call me if you are interested in buying or selling property or to learn what your property could sell for in the current market.