How Will Low Inventory Effect The Market? We want see inventory levels go up in 2021 and how will this affect the market. Hi, I’m Rich Barnes owner broker of Realty Experts in West Allis, Wisconsin, 53214. In my 21 years in the industry I have never seen inventory levels this low. Ever. What does that mean for a seller and a buyer? Laurie inventory levels, cause home prices to go up in the market because buyers are bidding over the list price. So this causes homes to increase at higher levels. It’s also great for sellers but it makes it much more difficult for the buyers. Lately we’ve had as many as 11 offers on one or more of our properties that we’re listing. Which makes it hard for buyers to have their offer chosen but also allow sellers to choose the terms of the contract that are most favorable to them. They are taking into consideration factors such as down payment, type of loan, contingencies, et cetera when they choose their offer. So buyers are having to come in as strong as possible with their offers. However, the medium age of an owner occupant is about 57 years of age. We’ve been told by health professionals that the older you are you’re the more risk you are at the having the virus or very serious complications. So many older Americans have waited to list their homes. And this is one of the factors that has led to the lack of inventory. So I believe inventory levels are going to go up once people feel more comfortable listing their home because they aren’t fearful of getting sick. Also CoreLogic predicts that the turnover rate the percent of houses that sell in 2021 to be higher than the 20 year average turnover rate. I hope this was helpful. Be sure to search out my YouTube channel for all four real estate predictions for 2021. That would be Richard Barnes-YouTube. Reach out to us anytime for anything as we are always here to help. And remember, you can rely on rich.com.