This spring season reflects a shortage of inventory for eager home buyers. There is precious, record little for sale. While this is good news for sellers, it is nerve-wracking news for buyers looking to settle on a home purchase fast! While it is true that the market will likely yield more listed homes in the next two or three weeks, demand is high right now and inventory is low.
Real estate agents and builders traditionally recognize Presidents Day weekend as the commencement of the spring housing market. This is typically the busiest time of year for home sales and the number of listed homes for sale always rises, as it likely will this year, however inventory is so low to begin with that new listings will not be able to meet all of the demands for eager buyers on the search for new housing.
Lang Premier Properties fully expects inventory to remain tight and the closer you are to urban areas, the tighter the inventory. Demand is strong and many listed properties will be sold before they even hit the market.
In December of 2015, inventory was down by almost four percent from December of 2014, however sales had increased by nearly eight percent according to the National Association of Realtors. The numer of listed homes was the lowest since the beginning of 2005 when there were fewer homes being constructed to add to the overall supply. January reflected a 4.4 percent decrease in listings from one year ago.
Local markets reflect even tighter January readings. Charlotte, North Carolina listings dropped almost 24 perecent in January from one year ago and the number of new listing were down by six percent. More than 4,000 homes were listed in January in Denver, however total inventory reamined at an all time low level. Buyers purchased more than what actually came onto the market.
Philadelphia inventory was down by nearly 17 perecent in January from one year ago. Washington, D.C. experienced such a shortage in listings that their supply was exhausted in less than two months at a consistent sales pace. Healthy housing markets normally carry six months worth of saleable inventory.
While one half of the homes that were sold in January in Washing, D.C. were on the market for an average of 26 days, competition among buyers elevated the average percentage of asking prices received upon a sale to 98.6 percent. The median prices were slightly higher than last year by 1.9 percent and marked the highest January level of all time for the District.
While there has been tremendous healing in the post-recession housing market, there is still much work to be done. Younger baby boomers who lost home equity in the recession are not moving up as much as in the past. Rather, they are staying in their current homes which is also affecting the current inventory shortage. This shortage puts increased pressure on housing prices.
While sellers seem to notice the limits, they are not pricing their homes as agressively as last fall. Homes are selling quickly, but not everything moves fast, especially when it is overpriced. The only thing worse than not getting a premium price for your home is having it sit on the market indefinitely.
With home prices surging, listings were still down in January in comparsion to one year ago and sellers are concerned that today's buyers are unwilling to pay desired prices for their current home in order to finance their new home.
If you'd like to learn more about selling your home and current housing market inventory, please don't hesitate to message Lang Premier Properties online or call us at 1-855-526-4466.