To be completely transparent, we thought for sure the market was headed for a much clearer softening than we are seeing currently. Of course, this is great news as it means home values are going to continue to go up and it impacts buyers and sellers differently. Let’s look at the details…
DEMAND: By the numbers, February ended slightly below last year. What the numbers don’t show is that, while 2019 got off to a slow start, things are moving very fast, yet again. Multiple offer situations and homes selling in hours, not days. So the lack of supply is still causing a problem.
SUPPLY AND INVENTORY ACCUMULATION: There were 14% less homes for sale in February this year than 2018 and yet the overall inventory accumulation is up 30%. In part, this is due to the lack of inventory which is holding buyers back quite a bit, and our business see’s this every day. The challenge is finding great homes, that are priced well for buyers.
Days On Market: Days on market is up 10% over last year which is no doubt effected by the lack of inventory. However, last year the inventory was also low and the days on market wasn’t as low. Overall, this is an indicator that homes are not selling quite as quickly.
CONCLUSION: For Sellers, this means that the time for you to sell your home in “hours” not days or months is waning. It appears that this spring season will continue to be like the last few years which has been crazy. And this is not for all areas. Not every area sells in hours which is why it’s so important to speak to an experienced sales agent, like Caleb or Jodi, who are Seller Specialists on our team. This will likely continue to cause home values to rise.
For buyers, it means the competitive market will continue and they need to be very well prepared for that competition. Hiring an agent who has strategies to get you a win with an offer is extremely important as competition is very stiff. In addition, buyers must understand that it’s likely that, depending on the location, they will have to go over asking price to secure the property.
If you are considering a purchase or selling, we’d LOVE the opportunity to interview for the job! We pay very close attention to the market and sold over 170 homes last year alone which brings a tremendous amount of knowledge and expertise which we want to apply to your situation. Call us at 484-696-4833