LOW Inventory: HIGH Demand
Updated: May 12, 2021
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TGFLIP MARKETING AGENCY
February 19, 2021
Content:
Introduction.
Market Before COVID-19.
Post COVID-19 Market.
Market Detailed Analysis.
How To Win NOW?
Astonishing Like A Boss Strategy!
Let's Do It Together!
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1. Introduction:
If you're dealing with the real estate market, you would surely have come across the term "low inventory". You may be wondering what it precisely means and represents. Today, we are going to cover several "low inventory" related topics for you.
The first thing is, what is low inventory. Basically, inventory infers to the number of products or houses (in real estate) that are listed on the market. Therefore, low inventory means fewer available houses. Several factors participate in the formation of low inventory. The first one is a season, like in a certain season of the year, there's always relatively low inventory. Other elements that contribute are the economy, the financial crisis of the state, interest rates, employment rates, etc.
2. Market Before COVID-19:
The real estate market before COVID-19 was a high inventory market. The listing of housing was much huge as compared to what they are right now! This high inventory leads to less demand as options and choices were there for buyers leading to a low-cost structure. High inventory always reflects a low demand and limited profit. According to Realtor, and Zillow (real estate platforms), the inventory in America started receding in March 2020.
The US real estate struggling market was growing before COVID-19 but in 2020 it experienced massive success and achievements. From a high inventory market to a lower one, and from struggling to expanding all changed due to COVID-19.
3. Post COVID-19 Market:
The COVID-19 dilemma considerably impacted the real estate market, resulting in a low inventory, high demand market. The restrictions and stay-at-home rulings lead to limited buyers looking for properties and less sellers to list their properties. This directly yields low inventory. However, as soon as the restrictions were taken off, the demand raised to a mind-blowing high level.
The property sales declined to their lowest points since the crisis of 2007 in April and May 2020. However, as the restrictions were over, the low inventory rapidly turned into a highly demanding market. Page-per-property views on Realtor and Zillow are up over 50%. This leads to a massive uprise in the real estate market. The sellers tend to move more toward digital technology for listing, selling, advertising of property because of the contact-less behavior of customers resulting in extraordinary growth in the market.
4. Market Detailed Analysis:
The Housing inventory decreased 39.6% nationwide in 2020, according to Realtor.com, making 2020 the record lowest inventory year. This leads to high demand, increasing prices. The increase is said to be a 13.4% increase. The prices are still forecasted to go even higher this year, retaining several thought processes for first-time buyers.
In the case of foreclosures, many people lose their jobs due to the global pandemic, it depends upon the new management's reaction towards incentives and forbearance.
The demand for houses is predicted to remain high even in 2021. The factor behind this is the primarily low-interest rate, and also the approach of millennials towards home buying. The manner through which the real estate market handles this high demand and low inventory would surely result in a high-priced market in 2021.
5. How To Win Now?
Low Inventory refers to the fact that there's more competition among available houses. So we've summed up a small buyer and seller tips paragraph for you!
As a buyer: It's explicitly stated that finding and buying is harder when inventory is low. You'll have limited choices, as more people would be looking upon the same property. As a buyer, it is required that you act quickly and you should be ready to make fast steps. The prices may exponentially jump up in a short period due to supply and demand, so, your attention and speedy work are required.
As a seller: It is a rapid market in low inventory, therefore you are required to be ready to take action every moment after you list the property. There should be no pending project on the property once it's listed. It is expected that a large number of people would interact with the property in the very first days. So, be ready to be there, to take action as soon as someone approaches you!
6. Astonishing Like A Boss Strategy:
Even in a high demand market, you need to sell your house effectively. This is because even though the buyers don't have many choices, but, they still want to know more about the property, and want to get the point that "it is worth spending money". The high-priced market leads to a much intenser thought process on the buyer side. So, here we are going to present a "Boss Strategy".
As already mentioned, a large number of sellers benefited from "Digital Marketing" as contactless behavior is reflected by the customers. Homebuyers are more inclined towards finding their dream home online.
"50% of the buyers find their new home online."
(Realtor)
The internet provides a big spectrum to real estate. From targeting specifically to virtual tours, all is appreciated and demanded by customers, just due to the development of the internet. That's why:
"In 2020, the real estate industry is responsible for 22% of total commercial drone usage."
This stunning fact indicates the increasing compassion and perception of buyers towards digital and specifically video marketing. Another similar fact below also reveals the motives of the market and buyers.
"73% of homeowners were more likely to list with a real estate agent who uses video marketing."
(The Close)
This is the strategy used by most successful home sellers, agents, to attract their customers and ultimately resulting in making more profit than ever. This isn't hard or impossible, it just needs the right decision to start by. And up next we're going to make it much easier for you!
7. Let's Do It Together!
Yes, you read it right! We are all there to help you out. With more than 7 years of experience in real estate, TGFLIP Marketing Agency is on your side to assist you to take lead in 2021! We are going to establish your online presence, list your property online, do its digital marketing, drive-in potential customers, and many more!
From video marketing to ad setups, from listing to approaching buyers, all is possible and achievable in a short time with our help! So say NO to more time wastage, and shoot us a direct message to begin!
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