Results of Record Low Home Inventory

By
Real Estate Agent with Blue Sky Realty, LLC 10814

I had a listing appointment on Monday and preparing the CMA for the sellers was eye opening. The same thing happened when I was showing homes this past weekend to an out of state buyer. There are very few homes listed currently. Buyers are losing out on homes they like if they hesitate to act. Prices are not yet rising, but they will simply because of supply and demand. Pre-sale homes to be built are selling quickly since there are no already built options.

USA Today had an article about the scarcity of home sellers in today's edition. Nationwide the supply of existing homes for sale has fallen for seven straight months. The absorption rate, months to absorb the homes currently on the market, has fallen dramatically.

I receive weekly, the current foreclosure report. There are very few additions to that any more. I tell my sellers and buyers that those who had to sell their homes have either sold or lost their home already. Many sellers do not have equity so are sitting tight until the prices start to rise.

So, while the real estate market has picked up a great deal, this presents other challenges. If I have a buyer, it is going to be darn hard to find them what they want, there will be compromises or they will not buy. If I have a seller, it is a challenge to get them the highest price possible while not pricing too high and missing out on a buyer.

 

 

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Comments (59)

Josh Kettell
Strategic Real Estate Partners - Montrose, CO
Montrose Colorado Real Estate, Homes, Land, Rental

What a difference a year makes.  In our market REO inventory is half of what it was a year ago.  Buyers are looking at more traditional listings and a clean, well priced home will contract quickly. 

Feb 27, 2013 11:04 PM
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

what is a normal market? we may never see that again. Now that you cant find a home for your buyer they can now save more money or improve their credit score to avoid using FHA which is mortgage insurance for life

Feb 27, 2013 11:53 PM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

That's the way it is here, we need a few more sellers to realize the potential of selling now. 

Feb 28, 2013 12:45 AM
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

As you say, finally the market gets going & there's nothing to sell out there. Feast or famine.

Feb 28, 2013 01:25 AM
The Keith Kropp and Wayne Rogers Team
Michael Saunders & Company - Sarasota, FL
Nowhere But Here

The same thing here in Sarsota.  We are down to less than 4 months of inventory.  It's crazy all over again.

Feb 28, 2013 01:39 AM
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

Yesterday my city had 27 active listings while the past 30 days sales totalled 67.  Our prices are quickly going up and creativity and speed are necessary to get the buyer into contract and through to a completed sale.

Feb 28, 2013 02:38 AM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Shouldn't we welcome a low inventory of properties? The effect will raise the FMV of all properties, wouldn't it? It was just reported that 50% of all sales in the nation were distressed properties, so hopefully, the median price for properties will stabilize somewhat going forward.

Feb 28, 2013 02:39 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

The inventory is so low it is shocking and people need to learn to jump on things.  Thanks for the post.

Feb 28, 2013 03:11 AM
Elisa Uribe Realtor #01427070
Golden Gate Sotheby's International - Oakland, CA
Opening the Doors to California Homes -East Bay

Well said. It's happening in many markets ours not excluded. Every day is different in the world of Real Estate, that's for sure.

Feb 28, 2013 03:17 AM
Annett T. Block
NextHome Connect Realty - Fort Lauderdale, FL
Your NextHome in Fort Lauderdale Beach

Isn't it time we see some changes in the market. It's nice for sellers but it is hard for buyers now in our market. Some buyers really have a hard time and many times get bid out by investors.

Feb 28, 2013 03:44 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

STILL plenty of inventory here, but the best priced ones are going QUICKLY. I'm working with several Buyers who were too slow or too low with previous Agents!

Feb 28, 2013 05:36 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

I have a listing that got 16 offers within 2.5 hours. The offers were coming in on an average of every 12 minutes. This market is super crazy and it's a LOT of work!

Feb 28, 2013 07:51 AM
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

I'm working with a couple of buying and it's difficult to find a suitable home and get the offer accepted.  Inventory is very low in my area.

Feb 28, 2013 07:56 AM
Linda Just
Leibowitz Realty Group - Palm Beach Gardens, FL - Lake Worth, FL
SFR

Yun, from NAR predicted the housing shortage. If you are looking to sell in our market and get top dollar, upgrade and renovate now. Buyer's do not want to do the work. They want the home or condo like new and ready to move in!

I've had plenty of Realtor contact with my last listing and many of these Realtor's have not properly qualified these people. Many Realtor's are running 'potential' Buyer's around before the Buyer has made application or verified funds. Now, isn't that crazy? They get mad at me because I tell them my Seller will not even think of accepting their offer!

Oh, and all you CA Realtor's, send some of your Buyer's to Florida...we can give 'em a deal!

Good luck to all!

Feb 28, 2013 09:00 AM
Cary Jo Hofstad
Blue Sky Realty, LLC - Kalispell, MT
Cary Jo, Hofstad, Broker, Blue Sky Realty LLC

I have been quizing showing agents about their buyers. It seems sometimes an agent is showing a variety of my listings that have nothing in common with each other. Does the agent have any idea of what the buyer wants and needs? 

Feb 28, 2013 09:04 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

We can't blame sellers for waiting if they don't have an urgent need to sell. And... I can't help but be suspicious. Are the banks holding back on finalizing foreclosures and are they waiting to list the ones they have - in order to drive the prices up?

Feb 28, 2013 11:31 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Cary Jo,  the same is true of the Dallas market.  Buyers are having a difficult time understanding that it is now a Seller's market.

Feb 28, 2013 01:33 PM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker
Looked at what "sold" yesterday on the MLS, and it is encouraging. The higher priced listings are finally moving. Why? Because the lower ones, those that can be financed, are gone. The rest have issues and need cash to buy. And it looks like investors are taking a vacation.
Mar 01, 2013 01:34 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Cary, send them here!  It is still a buyers market with median price $90k

Mar 01, 2013 03:04 AM
Cary Jo Hofstad
Blue Sky Realty, LLC - Kalispell, MT
Cary Jo, Hofstad, Broker, Blue Sky Realty LLC

Just missing the same scenary, like the Rocky Mountains :)

Mar 01, 2013 03:09 AM