If you're shopping for a home in today’s competitive real estate market, you’ve probably heard the phrase “time is of the essence.” In 2021, the housing market has been a seller’s market like no other, with historically low interest rates driving high demand and low inventory. Homes are selling in a matter of days—sometimes hours—which means buyers need to be prepared to act quickly.
Here’s what you need to know about navigating the market and why submitting offers promptly is more important than ever.
Low Interest Rates Are Fueling Demand
With mortgage rates hovering around 2.5%, buyers are jumping at the opportunity to lock in affordable monthly payments. For many, this means they can afford more home for their money compared to previous years.
A 2.5% interest rate translates to significant savings over the life of a loan. For example, on a $300,000 home, the monthly principal and interest payment would be around $1,185, compared to over $1,400 at a 4% rate.
These historically low rates have created fierce competition as buyers race to take advantage of the opportunity before rates rise.
Low Inventory = High Competition
The supply of homes available for sale in 2021 has been at record lows, with many neighborhoods seeing fewer listings than ever before. This imbalance has made it a true seller’s market, where multiple offers and bidding wars are the norm.
Homes are receiving multiple offers within days, often going for above the asking price.
Some sellers are even accepting offers within hours of a home hitting the market, leaving little time for buyers to hesitate.
Why Submitting Offers Quickly is Key
In a market like this, hesitation can mean missing out on your dream home. Here’s why speed matters:
First Impressions Count: Sellers are looking for serious buyers who are ready to commit. Submitting a strong offer quickly shows you're serious.
Competition is Fierce: Other buyers are likely eyeing the same property, so waiting too long to make a decision could result in losing out.
Streamlined Processes Win: Having your finances in order (pre-approval letter in hand) allows you to move quickly and confidently when the right home comes along.
Tips for Buyers to Stay Competitive in 2021
Get Pre-Approved: Before you even start house hunting, get pre-approved for a mortgage. This shows sellers you’re financially ready to close the deal.
Work with a Real Estate Agent: A knowledgeable agent (like me!) can help you stay ahead of new listings, guide you in crafting competitive offers, and navigate the fast-moving market.
Know What You Want: Create a list of your must-haves and nice-to-haves before starting your search. This will help you make quick, confident decisions.
Be Flexible: In a hot market, flexibility on things like closing dates or minor repairs can make your offer stand out.
Be Ready to Act: If you find a home you love, be prepared to submit an offer the same day. Time is critical in a seller’s market.
The Bright Side for Buyers
While the competition may seem overwhelming, the low interest rates in 2021 make this an incredible time to buy. Even in a seller’s market, securing a mortgage at around 2.5% allows buyers to stretch their purchasing power and lock in affordable monthly payments for years to come.
Ready to Buy? Let’s Make It Happen!
The 2021 real estate market waits for no one, but with the right preparation and guidance, you can still find your perfect home. At Bexar Realty Group brokered by Central Metro Realty, we specialize in helping buyers navigate competitive markets with confidence and speed.
Contact Mindy Romero today to start your home buying journey, and let’s make your dream of homeownership a reality—even in this fast-paced market!
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