Upcoming Holiday Season May Exacerbate Inventory Shortage

Often home sellers decide to take a break from showing their homes around the holidays, and this is the time of year Realtors start that conversation, accommodating our clients’ holiday plans while also meeting their longer-term goal, selling the house.

Current Situation

This year, however, proves to be a bit different. Inventory is short, with only 1.37 months worth available. Anything less than three months is considered a seller’s market. Homes are selling faster, with the median number of days on the market under 10 for the first time ever. Sale prices and the number of transactions closed has also increased significantly compared to September 2019.

Anne Arundel County, where the city of Annapolis is located, posted a record median single-family home price, $485,000. Even though prices have risen, affordability is not as much of a concern, as interest rates have decreased since this time last year, striking a balance. Read the full report here.

I’ve been out home shopping lately with buyers looking in the $500,000 price point. They’re acclimating to a market where homes are under contract within a few days of listing, so quick communication and having a flexible schedule to tour homes is crucial to even get an appointment, let alone make an offer.

Holiday Habits

In a “normal” (what is normal anymore?) year, sellers often decide with family gatherings and overnight guests, cooking complicated family meals, and the heightened stress of entertaining, they just can’t be on alert to show their home with only a few hours notice. This year will likely be different due to COVID travel restrictions and another wave of cases as people head indoors with cold weather, In addition, election year burnout may be additional incentive to wave off hanging out with extended family for now. But if sellers do decide to take a break from showing their homes around the holidays, the result may be further compression of an already tight market, one that will push down that spring of buyer demand, just as it did earlier in the year with the onset of COVID.

So look for the hot market to continue into the spring, as inventory and interest rates stay low, and buyer demand (and frustration) remains high.

If you’re considering selling your home, this is a good time. Even if you’re not crazy about the idea of showing your home around the holidays, take comfort in the numbers. With a median of nine days on market, the inconvenience shouldn’t last long if your home is well-priced, widely marketed, and in good condition.

Happy to help!