2021 is starting off with very tight inventory levels. Down 17% over last January, this limited inventory is making it even more difficult for Buyers to find and purchase a home than in 2020. With inventory this scarce just about the only thing that can help is a slight rise in interest rates. This week, as a result of the 10 year treasury bonds rise in yields, the rates did go up for the first time in quite a while. According to Barrrons, these yields will continue rising slowly as Bond prices lower this year. They don’t expect interest rates to dramatically increase. I think a rise in interest rates could deter enough Buyers to wait and help to reduce the pressure on prices and increase inventories to a more balanced market and get some distance from the incredibly strong Seller’s market that we have been experiencing for a the last couple of years. A more balanced market will help stabilize prices and allow for a more normal market.