One of the most interesting things happening in the national real estate world is the decrease in supply of available housing for purchase. According the the National Association of Realtors Existing Home Sales Report there is a shortage of housing inventory being reported throughout the country and buyer demand over the past year is up. In fact, raw unsold inventory is at its lowest levels nationally since December of 1999. That means inventory, nationally, is at a 13 year low.
Is the Local Market at a Similar Low?
Not quite, but we are getting there. Our inventory is at its lowest levels since January of 2006. That is good news if you have been thinking about selling your house.
Is this a Good Time to Put Your Home on the Market?
Yes! The price of anything is determined by supply and demand. Inventory is at its lowest point now since the real estate boom. And buyer demand is high. In fact, Lawrence Yun, NAR chief economist, reveals:
“Buyer traffic is continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country.”
Should you sell your house now? While its very difficult to predict when the “perfect” time is, all indications are that this maybe the ideal time. Some feel that there maybe pent-up inventory about to come on the market. These are the people who have had negative equity over the past few years and so have held off on selling.
The Zillow Negative Equity Forecast predicts:
“The negative equity rate among all homeowners with a mortgage will fall to at least 25.5 percent by the fourth quarter of 2013, freeing more than 999,000 additional homeowners nationwide.”
If these homes come on the market then the supply/demand ratio will balance out and will lessen the opportunity that sellers have now. However, there is debate on how much of this inventory will come on the market at once. It maybe insufficient to avoid the more frequent incidences of multiple bidding and faster-than-normal price growth.
These are difficult things to predict. Locally, NOW looks like a good time to put a home on the market. Time will tell as we move further into 2013 if this continues to be the case.