This is true but every market is seeing variations on this. Some areas actually have higher amounts of supply but many of the homes are not in the best condition and over priced. There seems to be a disconnect with some Sellers that are pricing there homes at the high price point when they are not at the best condition.
While inventory is low buyers aren’t just buying anything that comes on the market. They are still looking for the best value which might mean a slightly higher price but the home has to be in excellent condition.
Reality is that the homes that sell for the highest prices are still the ones that are in the best condition and priced correctly.
Call me to see if your home is a candidate for selling this year and I can help you navigate the buying side as well!
For every transaction I close this year I will continue to donate to one of my four charities; Furkids, Decatur Education Foundation, FitWit Foundation, and Senior Connections-Meals on Wheels!
The latest Existing Home Sales Report from the National Association of Realtors (NAR)revealed a direct correlation between a lack of inventory and rising prices.
We are all familiar with the concept of supply and demand. As the demand for an item increases the supply of that same item goes down, driving prices up.
Year-over-year inventory levels have dropped each of the last 18 months, as inventory now stands at a 4.0-month supply, well below the 6.0-month supply needed for a ‘normal’ market.
The median price of homes sold in November (the latest data available) was $234,900, up 6.8% from last year and marking the 57th consecutive month with year-over-year gains.
NAR’s Chief Economist, Lawrence Yun had this to say:
“Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017. Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country.”
But there is good news about rising prices. More and more homeowners are recovering from a negative equity situation and learning that they are able to sell their homes and either move up to their dream home or downsize to a property that will better suit their needs. Look for these homes to come to market soon.
Buyer demand continues to outpace the supply of homes for sale. Listing your home in the winter attracts serious buyers who are looking to close the transaction quickly.