If you’re like me, when you started the buying process you might have wondered why some houses are so outrageously priced and others are not. There are many factors that come in to play such as mortgage rates and availability, economic growth and personal demographics. But when prospective buyers are shopping their market, the one factor they may overlook is inventory shortage.
Real estate inventory is the quantity of houses that are available for purchase in any given market. When I’m out showing people properties, clients always amazed at how few mid-range homes there are. Clients also can’t believe how quickly they go.
The only time that inventory is a problem for home buyers is when the inventory is low. Basic economics. High demand and low supply yields high price tags for buyers. However, if you’re looking to sell, this is great news for you. The fewer homes available, the higher the price tag on your home.
In our current market in the Pacific Northwest, there has been an inventory shortage for several years. Due to the shortage, people are staying in their homes longer and moving less. Contractors are also in a bind because of the inventory shortages are causing prices to shoot through the room. Contractors don’t get paid for homes that sell for less than their cost for production, making them less inclined to build for fear of not making a profit.
In this quick video Matthew Gardner, Windermere’s chief Economist, breaks down the inventory shortage and it’s side effects. He also gives us a forecast for what might be to come.
Is this a good time to sell?
Here is your housing snapshot for January 2017 showing an increase of 10% in median home prices and time on market down 5% in Kootenai County. If you are a seller who is on the fence about putting your home on the market, this snapshot is a good indication that this might be a very good time for you to sell your home.
A market offering higher median home prices, shorter closing time frames and less inventory will give sellers who decide to list now have some real advantages especially this time of year.
Listing your home before the masses who wait for better weather in April and May can give you the edge for success. Low inventory combined with a large number of qualified buyers creates competition for your listing. Many buyers have already lost out on another home and these buyers are ready to pounce once your listing hits the MLS. Homes that are show ready and priced right are garnering multiple offers at full price and often offers over full price!
If you would like to be kept up to date on the market or know more about selling your home or the value of your home, contact us and we will be happy to provide you with a customized market analysis.
John and Tracey Your Professional Agents 208-818-2365 John email@example.com 208-818-2456 Tracey firstname.lastname@example.org Website www.johnandtracey.com
Election season is here. Will this next election have an impact on our real estate market? Here is what Windermere’s Chief Economist, Matthew Gardner, has to say about this subject.
Here in North Idaho we are enjoying a very healthy real estate market and we all want to see this continue. I know we all have our candidate and beliefs about who should be in office and what they can accomplish – I am no different. I do believe once we have a new president elect in office and things settle in, we will be back on track, no matter who is elected… my candiate or yours 🙂