The total inventory of homes available for sale fell for the first time in 16 months. The months supply is already low at 4.4 months. More inventories are needed, not less. Or else, home prices could re-accelerate…Lawrence Yun, NAR’s Chief Economist
We need more people who are in homes right now, to get their homes on the market, to move up to their dream home.
Since 2008, homeowners have been staying in the same home for an average of 10 years, instead of the normal average of 6 years that we saw for many years. This was due to a lot of them being afraid of the economy, which is getting better, and many of them were locked in because they had no equity left in their house to sell. That is all changing now. Indiana currently shows that 95.3% of homes now have equity and can sell. So these homeowners can now sell again.
Why you should sell your house now, not later?
The number of buyers out looking for a new home right now far surpasses the amount of buyers looking last year at this time (see foot traffic graphic below).
There are a lot of people currently out looking for houses. It is a hot market right now! If we just isolate this December verses December 2013, we are crushing it with the number of people out there ready to buy a house.
If you are planning on moving up, the price you get for anything will depend on the supply vs the demand. If there’s very few of something and a lot of people want to buy it, the price goes up. If there’s a lot of something and very few people who want to buy it, the price goes down.
Market reports tell us that the demand for single family residences is way up, foot traffic is up. What about supply? It’s fallen off the charts! Six months of inventory is needed to have a normalized market. We’re down to 4.4 months, right now. If my dad and mom were thinking about selling a house, I would make them put their house on the market today! Why? Simply because demand is way high and supply is way low. That means it’s the best time for them to get the best deal that they can get.
Some of you will be thinking, let’s wait until spring. The flowers will be out and the lawn will be green. Guess what? All of your neighbors are thinking the exact same way.
NAR just came out with a report showing the three months of the year that most people put their house on the market (see graphic below). When the supply increases dramatically, your competition increases dramatically. Those months are April, May, and June.
So, if you are waiting for the spring to list your home, you are waiting for more competition to come on, by a lot. You would be much better off to get your home listed this month and get it SOLD by May. To get a better deal, you need to get your home listed and SOLD before that competition comes.
Last year at this time, January – March, inventory was way low, then it shot up and continued to shoot up through December. Again, just looking at the simple supply and demand, if demand is way high and supply is low, you want to sell now. You don’t want to wait until the supply increases dramatically.
You might think that in the spring there will be more buyers out there. Well, I am here to tell you that I think spring has already sprung, from the buyers side. They are already out there looking, they get it. Prices are going up, interest rates are projected to go up, it’s time to buy right now. They are not waiting until the spring and I think the smart sellers are not waiting until the spring either.
Make sure your Realtor is educated about the market. Their knowledge can help you determine the best or worst time to buy and/or sell.
Let’s do it YOUR way!
Buying a home in Kokomo or Lafayette areas? Let me know your dream home and the kind community you wish to live in. Tell me your wants and needs. Let me know what’s important to YOU, and we’ll find the community and home that you desire.
Selling your home in Kokomo or Lafayette Areas? Let me help you to make you the most money possible in the shortest amount of time. I offer sellers a professional, written marketing plan, the most progressive marketing strategies in the industry, consulting, and staging.
I am a mobile agent committed to helping you around YOUR schedule. Can’t drive to my office? No worries…Let me come to you. I am here to help YOU make this transition and this transaction as convenient and smooth as possible.
Gena can be reached at 765-210-5582 or you can email her at firstname.lastname@example.org.
Posted on February 12, 2015 at 12:49 pm by Gena Martin Realtor