Main Content

Massive Influx of New Properties to Housing Market Will Cool Housing Market Slightly

The Real Deal

Everything Real Estate in the San Fernando Valley
Monday April 26, 2021
Massive Influx of New Properties to Housing Market Will Cool Housing Market Slightly

The COVID-19 housing market has been defined by inventory shortages, record low mortgage interest rates, mind-boggling sales prices in relation to asking price, and absurdly quick turnaround. As is natural, many people are wondering when this hot streak ends; all good things must come to an end.
According to a report by, 10% of current homeowners intend to sell their homes this year, at affordable prices, 63% of whom have already begun the process; another 16% plan to sell their homes within the next 3 years. In a normal year, roughly 8% of homeowners attempt to sell their homes, so the report suggests a 25% increase in supply is coming soon; this translates to an additional 1.5 million homes. This influx of supply will go a very long way towards cooling the market down, as it’s largely been driven by supply shortages; shortages have enabled homes to sell for ridiculously high prices.
The national median list price increased by 16% between March 2020 and March 2021 to $350k, providing analysts with a clear snapshot of how bidding wars over scarce supply has been wildly lucrative for sellers; it doesn’t hurt that mortgage rates are sitting at 2.97% either. Most of the homes that will be coming onto the market appear to be priced below the $350k median price point, which suggests that the average price point will decrease with the influx of new properties to the market. Ultimately, it’s been a bumpy road for home buyers, but things are about in a way that will balance the playing field a little more.
At the Chernov Team we understand that knowledge is power and understanding market trends is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.


Stay Connected

Sign up to Access:

Exclusive private listings S.F. Valley market insights VIP events

    Thanks for signing up!
    By signing up you agree to our Terms & Conditions

    More Blog Posts

    To Love
    Monday September 20, 2021

    On September 16, 2021, Governor Newsom signed one of four planned bills directed at enabling housing construction i...

    Read Full Post
    Tuesday September 14, 2021

    Since the onset of the pandemic a year-and-a-half ago, sellers have been a lot like the Los Angeles Dodgers – the...

    Read Full Post
    Friday September 3, 2021

    For the sake of not rocking the boat, let’s put aside the question of what is causing climate change and simply a...

    Read Full Post
    Monday August 30, 2021

    On Thursday, August 26, 2021, the Supreme Court of the United States (“SCOTUS”) struck down the Biden Administr...

    Read Full Post
    Tuesday August 24, 2021

    On August 23, 2021, the National Association of Realtors (“NAR”) reported that existing home-sales rose 2% betw...

    Read Full Post
    Monday August 16, 2021

    The new construction sector of the housing market has been seeing positive signs. To briefly recap, the cost of lum...

    Read Full Post