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Market Impact & You

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Real Estate Agent with Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA 92593-B

In our town and the 4 towns bordering us, there are only 22 listings. One of those 4 has 10 listings with the lowest priced listing at $779,000 and the highest-priced is listed at $2.250,000 and median Days on Market is 150 days. The other 3 towns have 12 listings between them. This is creating a fiercely competitive market and driving prices up and could force some buyers out of the market or cause them to look further out than they desire. With low inventory and low interest rates...

How is this impacting your client's ability to purchase a home?

Housing Inventory Vanishing:

What Is the Impact on You?

Housing Inventory Vanishing: What Is the Impact on You?

The real estate market is expected to do very well this year as mortgage rates remain at historic lows. One challenge to the housing industry is the lack of homes available for sale. Last week, move.com released a report showing that 2020 is beginning with the lowest available housing inventory in two years. The report explains:

“Last month saw the largest year-over-year decline of housing inventory in almost three years with a dramatic 12 percent decline, pushing the number of homes for sale in the U.S. to the lowest level since January 2018.”

The report also revealed that the decline in inventory stretches across all price points, as shown in the following graph:Housing Inventory Vanishing: What Is the Impact on You? | Keeping Current MattersGeorge Ratiu, Senior Economist at realtor.com, explains how this drop in available homes for sale comes at a time when more buyers are expected to enter the market:

“The market is struggling with a large housing undersupply just as 4.8 million millennials are reaching 30-years of age in 2020, a prime age for many to purchase their first home. The significant inventory drop…is a harbinger of the continuing imbalance expected to plague this year’s markets, as the number of homes for sale are poised to reach historically low levels.”

The question is: What does this mean to you?

If You’re a Buyer…

Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be ready to make a competitive offer from the start, and understand that a shortage in inventory could lead to the resurgence of bidding wars. Calculate just how far you’re willing to go to secure a home, if you truly love it.

If You’re a Seller…

Realize that, in some ways, you’re in the driver’s seat. When there is a shortage of an item at the same time there is a strong demand for that item, the seller of that item is in a good position to negotiate. Whether it is price, moving date, possible repairs, or anything else, you’ll be able to demand more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.

Bottom Line

The housing market will remain strong throughout 2020. Understand what that means to you, whether you’re buying, selling, or doing both.

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Grace be with you, and peace, from God our Father, and the Lord Jesus Christ.

2 Thessalonians 1:2 KJV

Keller Williams Realty Evolution

447 Newburyport Turnpike Suite #5

Topsfield, MA 01983

 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Doug,  Excellent blog and great information for buyers and sellers to know about.

 

Jan 21, 2020 08:04 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Will Hamm 

I cannot remember a time when inventory was so low.

Jan 21, 2020 08:38 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Doug Dawes - this is certainly happening all over.  Not sure why more are not selling in this market.

Jan 21, 2020 09:56 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

That's amazing that the lowest priced listing in your market is $779k. Makes it hard for entry-level buyers. Hope more inventory comes online soon Doug.

Jan 21, 2020 02:40 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Debe Maxwell, CRS 

That is one of the bordering towns to our town. 

Our town of Georgetown only has 4 active listings. One is a teardown and has been on the market for 181 days. One is in the center of town beside a sub shop & a gas station and the other two are $659.9K & $699.9K.

Jan 21, 2020 09:02 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Grant Schneider 

There is much conjecture as to why but no one is certain. The economy is good and I think the political atmosphere has a significant impact. 

Jan 21, 2020 09:04 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

That is crazy, Doug. Our inventory is super low here but, not THAT low!

Jan 21, 2020 09:13 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Debe Maxwell, CRS AND yet there are 42 homes currently Contingent, Under Agreement, or Closed in the last month from the 5 communities I cited. 

Jan 25, 2020 07:48 AM