One question we frequently get asked is how’s the market doing. With the massive influx of new home buyers, home sales are looking good. However the other side of the coin is we have a diminishing inventory. It has been trending this way for a while. If you are looking for a home it is becoming harder and harder to find a home. Sellers however are enjoying some good appreciation in their home values.
Inventory is down 33% from last year and the median sales price is up 13%. This is just a basic market reaction to low inventory and high demand. With the diminished inventory the average days on the market are down 11%. So what does mean to you as a buyer? Well if you are in the market to buy you need to be ready to act quickly if you find something you like. With rising prices and diminished inventory the homes are not lasting long on the market. How can you be prepared to act quickly? Well first and foremost talk to your lender to see what you are qualified to buy. With the knowledge of your buying power and a mortgage preapproval letter in hand you can be well prepared to make an offer on a property. Second subscribe to our Home search on our website. This will alert you to any new homes that hit the market immediately. If something meets your criteria it will be emailed to you and we can get you in there to take a look.
Third, be prepared to make a good offer. The sold versus list price right now is hovering right around 98%. This means that the sellers are sticking very close to their asking price. We understand everyone wants a deal on a home. Unless the asking price is grossly over inflated going in with a low ball offer is going to leave you disappointed. So in this market it is always advisable to start the offer off at a good negotiable price. Be prepared to pay asking price for a home. If your budget is $400,000 don’t look for homes that are $500,000. Be prepared for multiple offers on a home. With the diminished inventory good homes are going to get a lot of attention and they go fast. How do you know if a home is over inflated in price? Well just ask us we can show you past sales in the area and help you determine if a home is way over priced. What do you do if you get into a multiple offer situation? Ask us and we can guide you through some tools and tactics that can help you gain the edge in a multiple offer situation.
The absorption rate is down to about 4 months of supply. The months of supply is extremely low. If you are looking at buying in 6 plus months out chances are the homes that you see for sale today won’t be there when you are ready to buy. It’s prudent to keep an eye on the listings that are getting sent to you. Keeping current on what homes hit the market and availability will help you become a good buyer. Ask us any questions about a home that you saw hit the market and went under contract. This way you can become well educated on current market trends, find the home you love and be satisfied with your purchase.
As always we are here to help you through the entire process. Give us a call and we can discuss your goals and work hard to help you obtain them. See you at the beach!