A MESSAGE FROM PRESIDENT, BRANDON SHAFFER
“2021 continues to show record growth in the real estate market”
“Numbers do not lie, and our community is growing in leaps and bounds” says MIRA President Brandon Shaffer. As more people get vaccinated, businesses continue to re-open with employees on-site and summer activities are starting to take off, those in our community have not slowed down when it comes to looking for real estate.
Shaffer notes that new construction in Bloomington/Normal and surrounding areas is at an all-time high. This time in 2020 our community had 8 new construction homes pending. As of April 2021, we currently have 25 new construction homes pending. That is a 212% increase in pending new construction homes. Closed new construction units are up 233% from this time last year. Builders attribute this to the lower-than-normal inventory numbers.
Year to date closed unit sales are up 25.6% over last year at this time. “It is an amazing time to buy and to sell a home” says Shaffer. Realtors have plenty of buyer clients, that are pre-approved and ready to buy. It is a perfect time to reach out to a Realtor to discuss the buying and selling process.
Sellers are listening to their Realtors when it comes to the advice they receive concerning the market, appropriate pricing of their homes, and what may or may not need to be done to attract a buyer. Because of this, listed homes are selling at a much faster pace than expected.
Shaffer notes that “a home’s average days on market is now 9 days compared to 35 days just a year ago.” This is a prime example of Realtors and clients working together to get the job done.
Interest rates remain low, first time home buyers are out shopping and many that were renting have started to lean towards wanting some more space since being in a work from home or home school environment for over a year now.
Randy Clark with Flagstar Mortgage, a Mid-Illinois Realtors Association platinum affiliate, notes that “mortgage rates remain low in our market and the demand for buying new homes remains very strong”. Clark further states that “the pre-approval process and buyers doing their homework is more important than ever”. “With multiple offers on almost every home Flagstar Bank mortgage lenders are working 24/7 to make sure clients are prepared and able to purchase these homes for their families during these times of strong demand and multiple offers”.
The average home sale price as a whole is up 34.4% across new construction and resale homes with the average new construction home price coming in at $299,697 and resale homes average sale price coming in at $171,542.
Shaffer says that Realtors have noticed a significant increase in homeowners paying for landscapers to create outdoor living spaces, having pools installed, exterior kitchen installs and more. Anything that a homeowner can afford to do that may add value to their home and continue to create an environment for all at home to enjoy is being done.