Low inventory of available homes for sale has been a significant component of the real estate market, both locally and nationally, for some time now.
Recent reports suggest that the situation isn’t improving to the extent that the lowest ever levels of inventory have recently been reported by organizations including the National Association of REALTORS®.
So why is this happening at a time when demand for homes is so strong?
There really isn’t a simple answer here.
Many homeowners have secured low mortgage interest rates and are often more inclined to upgrade a home than move. New construction levels are still not where they should be and, during the years of recession, many people put off thoughts of moving and have simply never revisited the possibility in the current very positive economic climate.
It’s also very likely that, observing the steady rise in home prices in recent times, some would-be sellers have decided to delay their sale to see if they can achieve even better returns (always a risky strategy).
The irony of the situation, however, is that those who do sell are enjoying a fantastic opportunity presented by high buyer demand chasing an increasingly weak supply of suitable properties.
Right now there’s much less competition between sellers, which makes realistic asking prices far more robust, often leading to multiple offers above the asking price for the best homes at each price point.
A less crowded selling market also means that your home has much greater visibility in the market than it otherwise might have, enhancing the likelihood of attracting many well qualified viewers to your property.
And when it comes to negotiations, you have a much stronger hand, simply because buyers don’t usually have many other options.
Inevitably, low inventory is also leading to faster home sales, as buyers are much less inclined to play a waiting game, in the knowledge that the best homes will soon be sold to someone else.
All this is happening at a time when we’ve seen some pretty steady increases in mortgage rates. These have done little, or nothing, to deter buyers as they are still at historically very attractive levels and there is always the awareness that they could rise yet further (something that becomes more likely as the economy continues to do better and confidence in financial markets consequently increases).
So if you’ve been on the fence about a home sale, it’s definitely worth considering the above factors in making a determination about when to sell. It really is a seller’s market right now, so why not contact us at Hyland/Schneider Team – 928-445-2100 -today and learn more about how we can apply our wealth of experience to help you maximize your returns in the quickest possible timeframe.