Today’s housing market has low supply and high demand. As a result it can be difficult for buyers to get a home under contract. We are slowing seeing that sellers are coming back on the market. This is a great opportunity for buyers. Javier Vivas, Director of Economic Research at realtor.com, explains:
“Seller confidence has been improving gradually after reaching its bottom in mid-April, and now it appears to have reached an important recovery milestone…After five long months, sellers are back in the housing market; while encouraging, the improvement to new listings is only the first step in the long road to solving low inventory issues keeping many buyers at bay.”
Even with an increase in home supply, it still is not enough to meet buyer demand.
The National Association of Realtors (NAR) reports:
“Total housing inventory at the end of June totaled 1.57 million units, up 1.3% from May, but still down 18.2% from one year ago (1.92 million). Unsold inventory sits at a 4.0-month supply at the current sales pace, down from both 4.8 months in May and from the 4.3-month figure recorded in June 2019.”
Houses are selling at a faster rate than they are being listed. There is only inventory for 4 months when we really need 6 months in order to keep up with the current rate of sales.
“The ‘housing supply’ component – which tracks growth of new listings – reached 101.7, up 4.9 points over the prior week, finally reaching the January growth baseline. The big milestone in new listings growth comes as seller sentiment continues to build momentum…After constant gradual improvements since mid-April, seller confidence appears to be reaching an important milestone. The temporary boost in new listings comes as the summer season replaces the typical spring homebuying season. More homes are entering the market than typical for this time of the year.”
Why is this good for sellers?
This is an excellent time for sellers. Competition is low because there are fewer sellers than buyers. You want to take advantage of the low number of listings in order to get the home sold quickly and at top dollar. Now is the best time to list!
Why is this good for buyers?
It is currently hard for buyers to get a home under contract because of the low inventory and low interest rates. Homes are more affordable today then ever before. However as sellers begin to return to the market, there will be more listings for buyers to view.
Call South Florida Real Estate Experts at Prestige Waterfront Realty today at 954-830-7000 or email Tegov@AskPWR.com. We can help you every step of the way.