March 2021 Hyper-Local Real Estate Report
Michael Prall, March 31st 2021
March brought on stronger sales this year with 139 listings closing at an average of $202,275 where last year March gave us 135 closings with an average of $146,242.
There were 180 new listings this year for march, with 148 listings which have expired.
Jennifer Schmidt with Weichert Realtors sold 7 homes last month, bringing in the most sales for March. (this is not sales volume)
Linsey Yates with Linsey & co. Realtors brought 9 new homes to the market in march also.
Nick and Ellie Glidewell with Sagely & Edwards brought in the most volume last month with $1,384,000 in volume. Good work guys!
It is no shock that this years real estate market has brought its own set of challenges to the industry. Ethics has been a major issue when properly handling multiple offer situations, leaving many hopeful buyers angry and feeling misrepresented. They probably represented just fine, however people don’t like to loose out on buying their dream home in a market such as this.
Another issue that is apparent is a bottle necking effect. There isn’t enough listings on the market for all of the buyers coming in to buy, which is causing fear amongst people vying to sell their home any time soon. Many sellers i’ve spoken with are afraid to list their homes knowing that it will most likely sell quick, which makes them nervous about finding a place too quickly and being rushed into another home they may not particularly desire.
As far as I know, Fort Smith hasn’t ever seen a market with this kind of absorption rate making it a sellers market. Im asked all the time what is driving this market and there are several factors.
Low interest rates – Even though mortgage prime was up last week to 3.25%, thats still incredibly low. More home for less money!
Covid-19– Had people isolated in their homes, and they realized it was probably time for an upgrade, and also because of migrations from places like California, especially.
Milennials– Who would have imagined the time would come so soon when the tide pod eating generation would come to buy homes? And boy did they ever. The national association of Realtors study results shows that 45% of all mortgage applications are driven by this generation of folks. Also, millenials make up 33% of the entire US market in general which would also explain jumps in other industries as well.