As we take a look at our most recent statistics, they’re very similar to what we’ve been seeing lately. Our inventory has decreased by about 50% from a year ago, and generally, October through December are lower inventory times anyway, so the season will exacerbate our inventory issue. However, pending sales have risen 31%, so as we head into the holiday season, this will likely be the best holiday market I’ve ever seen because we have increased demand but a decreased supply. This is excellent for sellers.
Of course, this is affecting prices; we’re beginning to see challenges with appraisers because they can’t always justify the price a home is sold for. The number of homes coming onto the market has dropped by about 50%; last October we had about 200 homes, while this October we only had 106. This is going to be a strong market for a while.
We can tell how different sellers are going to experience this real estate market by how long houses are staying on the market. Certain properties will sell very quickly; we have an average days on market of 30 . That means some homes are selling in four or five days, and some are taking two months. A few of the reasons some houses aren’t selling as quickly are because of the condition, floor plan (single-levels are more in demand than two-levels), less usable yard space, location, or price. So not everyone is benefiting the same way from this hot market; the home will sell, but some take a bit longer if there’s less demand for it.
"This will likely be the best holiday market I’ve ever seen."
We’re currently seeing a massive influx of first-time buyers, and I credit that to the very low interest rates. If you look at the rental prices right now, they’re so much higher than what you would pay to own a home. Those considering buying will be shocked by what they can afford.
If you’re thinking about buying, I recommend three things:
1. Find a stellar real estate agent to help you with the process
2. Connect with a great lender and get pre-approved
3. Start looking at houses
I suggest doing these things in this order because the right agent will help you find which lenders will provide the best service. They’ll also help you figure out where to look and what options you have so you can find the ideal property for you. This is an opportune time to get into the marketplace because you have exceptionally low rates, and prices are only going to rise.
If you have any questions or you’re considering buying for the first time, give us a call or send an email. We would love to help you. We also appreciate the fantastic referrals you’ve sent our way, so thank you!