With the all of the changes that the real estate market has endured throughout the current economic climate, it is imperative that we keep a very close eye on several aspects of the market in order to understand the challenges that buyers and sellers may face. One of the key factors we analyze is the current inventory of homes for sale.
One of the reasons buyers may be having trouble securing a home is that there are so few properties for sale. In January of 2012, the Multiple Listing Service reported an inventory level of 2.2 months. This means that if no new properties came onto the market, and we continued to sell them at the current rate, in 2.2 months there would be no houses left to sell.
At an inventory level of 6 months the market is considered to be in balance and when inventory exceeds 1 year there is considered to be an oversupply. So at 2.2 months, when a property comes onto the market and is priced correctly, it typically sells in a short period of time and usually obtains multiple offers – some of which will be all cash.
If you are currently in the process of looking for a home and if you keep in mind the low level of inventory, this awareness should help you in structuring your offers to increase the chances of them being accepted. A few important points to consider when structuring your offer:
- A good deposit to show you are serious
- Full price offers, or in some cases, offers that are above asking price when there appears to be a lot of competition.
- Keep your conditions to a minimum
On the other hand, if you have been thinking of selling your property, NOW is an excellent time, as values are increasing and homes are selling quickly!
Don’t forget to keep checking back with us this month as we cover some of the other topics that are vital in today’s real estate market.
Gonella Realty's Market Update 