Once again, a tip of the hat to local economist and guru, Steven Thomas. The headline alludes to the fact that listing property inventory has started to drop. That is significant for two reasons. First, this is the time of year that inventory always drops. The Fall is usually the slowest time of the year. The difference this year is that the buyers are still there in greater numbers than sellers. Bottom line, the hot sellers’ market doesn’t seem to be slowing, and prices are as strong or stronger than ever.
A few things have changed. First, sellers just don’t sell as frequently as they used to. They tend to hold on to their homes much longer. For several years, we used a formula for turnover (sales) of 7-8 years. You could safely estimate that about 15% of all homeowners would sell their homes in any given year. That has changed dramatically in the last few years. That number is closer to 12-14 years between moves, or about 7-8% of all homeowners selling.
Even the incredible appreciation we’ve seen and the relative ease of selling has not fueled the inventory buildup. Yes, we’ve peaked, and in all probability, we will not see any significant increase in inventory in the next several months.
So, if you are a buyer, you need to accept this reality, and to take advantage of our incredibly low interest rates to secure a great home for your family or a great real estate investment property for your future now.
If you are a seller, once again this is an excellent time. Not only are prices higher than in history but demand is so great that you not only will get the best price in the shortest period (average marketing time is 33 days, and 70% of all homes sold in the area in July sold for OVER their asking price), but you will be able to control your sale (possible rentbacks, as-is condition, no repairs).
We are experts at helping you make the best decision for your family, and have been the Realtors of Choice for hundreds of you, my clients, for over 43 years (time does fly, doesn’t it?)