For the first time in a while, we are not talking about low home values. We are actually describing the number of homes currently for sale in the local Cleveland real estate market.
Take a look at the numbers below of current listings in some of the area's more popular suburbs:
CITY ACTIVE LISTINGS
Aurora 67
Beachwood 33
Bainbridge 65
Chagrin Falls 39
Hudson 95
Lakewood 91
Pepper Pike 47
Rocky River 76
Solon 97
Westlake 91
Can you imagine what it's like buying a home in Beachwood? There are only 33 homes for sale in the entire city, meaning there's only a handful in any given price point.
Low inventories have actually been a problem for a while now and will continue to present a challenge for anyone entering the real estate market this year.
CHALLENGES FOR BUYERS AND SELLERS
Here is what low inventories mean:
FOR BUYERS:
1. Harder to find a home
2. Increased Competition
3. Higher Prices
4. Less Negotiating Power
5. Must Be More Flexible
FOR SELLERS:
1. Easier To Sell
2. Increased Confidence
3. Higher Prices
4. More Leverage
5. Easier To Buy Another Home
TIPS FOR BUYERS AND SELLERS IN 2013
The most important thing to do if you are buying a home this year is to get pre-approved up front. Waiting until the last minute to get your financing in order may be too late. Limited inventory causes competition ( bidding wars! ) and without a firm pre-approval, you will be negotiating from a weakened position.
Hire a buyer's agent. A good agent will be aware of homes that are available but not yet on the market. Agents are very resourceful and can work their network to find homes for their buyers.
If you are selling this year, get your home on the market as soon as possible. Right now you have less competition and, if priced properly, could really benefit. Make sure your home shows well and is priced properly.
Low inventories bring a new dimension to our local real estate market. However, compared to the rough years we saw during the recession, this is a good problem to have.
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Here are some of our others posts that may interest you as well:
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Real Estate Agents Are Not Just Door Openers
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About The Authors:
Dan and Amy Schuman are agents with Howard Hanna, the area's largest real estate company. They live in Solon Ohio and specialize in Cleveland Luxury Homes, working with buyers relocating to Cleveland, and first-time buyers.
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How Low Can You Go? is the property of The Schuman Team and may not be duplicated or used without their written consent.©March, 2013
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