What Happens When There Are More Buyers Buying Than Homes To Sell?

By
Real Estate Agent with Coldwell Banker Residential Brokerage

What happens when there are more buyers searching for homes to buy than there are homes to sell?

As the infographic below shows, with buyer demand exceeding housing supply in many parts of the country, the result is that homes sales actually slow down--even in a high demand market.

 

At the end of the day, real estate is all about supply and demand. So when supply begins to dry up, the next thing to expect (besides a slow down in sales) is continued increases in home prices.

 

What Happens When There Are More Buyers Buying Than Homes To Sell?

 

How does the Charlotte, North Carolina metro market compare with national statistics?

 

  • Inventory of homes available for sale in Charlotte area as of April was 3.9 months versus the national statistic of 5.3%. Charlotte's housing inventory was down 22.4% in April 2015. In much of the Charlotte metro area, there is no pretense of our housing market being a balanced one. It's very much a seller's market right now.

  • Fortunately, Cherloote metro area's closed sales in April 2015 were up month-over-month by 6% despite the declining inventory. And on a year-to-year basis, closed sales were up 15% as of April 2015. However, with decreasing inventory, it's not hard to imagine the day coming in Charlotte when home sales might decrease, not because of buyer reluctance or lack of them, but because of lack of inventory.

  • The percent of distressed property sales in the Charlotte metro area in April 5.4% of total sales--about half that of the national average of 10%.

  • Median price of homes sold in the Charlotte metro area was up 8.6%, comparing quite favorably to the 8.9% nationally.

 

 

The "take-way" for the serious home buyer in the Charlotte metro area?

  • Buyers will increasingly see fewer options of homes to buy.

  • Buyers will need to expect home prices to continue to increase and not expect to negotiate much.

  • Buyers will need to make decisions about home purchases more quickly.

  • Buyers must expect to face multiple offer situations in high demand neighborhoods.

  • Buyers will need to identify in advance what compromises they are prepared to make in order to secure a home in a desired neighborhood.

 

Click Here To Search For All Charlotte Metro Area Homes For Sale

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SEARCH ALL CHARLOTTE METRO AREA HOMES HERE

 

 Nina Hollander, RE/MAX Broker, Realtor

 

 

 

 

 

 

Nina Hollander

Broker, Realtor, MBA, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with Coldwell Banker Residential Brokerage
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: News You Can Use From Charlotte/Ballantyne/Waxhaw/Fort Mill
Search For All Charlotte Area Homes: www.GreatHomesInCharlotte.com 

2007 - 2019 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, or financial advice.  For legal advice see an attorney.   For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Ginger Harper 06/04/2015 04:03 AM
Topic:
Real Estate Market Trends
Location:
North Carolina
Groups:
City and State
Charlotte NC Real Estate
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
Inspiration Station
Tags:
home sales trends
charlotte nc area homes for sale
home sales 2015
charlotte nc area home sales update
home buyer demand exceeds available homes for sale

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Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Sandra Jarock ~ I've heard of half a dozen or so offers on homes here in Charlotte, but not 30-40! I don't envy the sellers and their agents having to sort through all of those.

May 29, 2015 10:25 PM #33
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Denise Dimares ~ are you finding that buyers are getting a bit shell shocked in your area the way they are here?

May 29, 2015 10:26 PM #34
Rainer
410,534
Raul Rodriguez
Covenant Partners Realty - San Antonio, TX
Looking out for the client's interest and not my p

Holds true in San Antonio as well, especially single story homes...they don't stay on the market long.

May 29, 2015 10:34 PM #35
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Raul Rodriguez ~ single story homes in Charlotte area are still more of an exception than the rule, so when nice ones come on the market they fly off the shelf and typically will sell at a price per square foot premium.

May 29, 2015 10:37 PM #36
Rainmaker
2,977,150
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

We are seeing the same in NH, there are mor ebuyers than homes for sale. the result is values are increasing, new listings can get multiple offers in days and those buyers ready to make good offers from teh start are finding their dream homes while those buyers not ready, want to wait or making lowe offers lose out. 

May 29, 2015 10:46 PM #37
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Scott Godzyk ~ I'm hearing so many sad storied about the Northeast, I'm happy to hear that NH is having a strong market.

May 29, 2015 10:50 PM #38
Ambassador
3,982,889
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Hi Nina, It becomes so challenging for agents when inventory is scarce. Buyers get discouraged and sellers get arrogant.

May 30, 2015 12:00 AM #39
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Debbie Reynodls, you are so right about buyers getting discouraged. I see it all the time. So far, I haven't seen too many arrogant sellers, but I am concerned about how I see listing agents skirting ethics in this market.

May 30, 2015 12:02 AM #40
Rainmaker
5,347,759
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

When the inventory is very low, home buyers need to be well prepared for multiple contract competition.

May 30, 2015 01:45 AM #41
Rainmaker
698,877
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Nina,  we are experiencing a real drought in listings here in Naples.  I have a list of buyers who will jump at any second if I can just find them a unit in a particular development.

May 30, 2015 05:16 AM #42
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Roy Kelly ~ the funny thing, Roy, is that many of them think that bidding wars will only affect others and not them. Go figure....

May 30, 2015 07:04 AM #43
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Chris and Dick Dovorany ~ I truly feel your pain, Chris and Dick. Same here in Charlotte. I have never checked MLS so frequently throughout a day for new listings as I do now!

May 30, 2015 07:05 AM #44
Rainmaker
2,394,939
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Nina, that is a great post about what happens when there are no homes to sell!

May 30, 2015 11:29 AM #45
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Thanks, Evelyn Johnston ~ I'm finding that buyers are absolutely gobsmacked by how few choices they have today versus just maybe three years ago.

May 30, 2015 08:51 PM #46
Rainmaker
1,488,078
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

I do not know who has these days 5 months of housing supply, since we do not. Properties are sold quickly with multiple offers, over the asked price. The only problem is: financing. I see a lot of properties are back on market or moving to back up offer, since the buyers can not get financing.

Jun 04, 2015 12:26 PM #47
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Inna Ivchenko ~ while parts of Charlotte are barely 2 months of inventory, we do have more outlying areas that are closer to 5 months. And I know that there are part of the country where inventory is much higher than what you and I are seeing. I haven't yet run into financing issues. Do you think it has to do with the price of houses in your area?

Jun 04, 2015 09:11 PM #48
Rainer
386,746
Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

It is the same in Toronto, ON; there are more Buyers than Sellers for houses, resulting in Multiple Offer situations, and a sales price very much higher than asking.

Jun 07, 2015 01:18 AM #49
Rainmaker
3,061,333
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Rosalind Nicholas ~ I suspect that the Toronto market has been a bit "crazy" for a while now.

Jun 07, 2015 01:59 AM #50
Rainer
386,746
Rosalind Nicholas
RE/MAX Condos Plus Corporation, Brokerage - Toronto, ON
Toronto Condo Real Estate Agent, Toronto ON

You are correct Nina, it has been 'crazy' in Toronto for a while.

Now, it is  specially so, for detached houses.

A few years ago it was pre-construction condo sales; people were in line-ups for days!

Jun 07, 2015 02:43 AM #51
Rainmaker
1,007,760
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

If a fixer is priced way below the market it will get that many offers.

After that many fight all over with several rounds of counter, the sucker overpaid for the home.

Jun 17, 2015 02:53 PM #52
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