Home Sellers Needed to Re-Balance the Market
To most people, it will come as a surprise to learn that one of the biggest factors impacting the real estate industry today has been a critical lack of inventory for the Buyers that are out there actively looking to purchase. Most people, hearing the rhetoric on the national news, just assume that there are way too many homes on the market, that most of them are foreclosure properties, and that no buyers are out there to purchase them anyway. In reality, at least in our little corner of the world, not one of those facts would be correct.
For starters, the inventory, in particular price ranges and styles, remains at a critical low point. I have buyers out there that I’ve been working with for weeks trying to find the perfect property to purchase, and there really is precious little to choose from. Low inventory is not all that atypical for January, but this year it’s been tighter than ever. Where a year ago, we had the opposite problem of gorgeous homes sitting on the market unsold, now I find myself with Buyers waiting for gorgeous homes.
Sometimes, the numbers alone don’t really tell the accurate picture of the dynamics of the market. This week, I did an analysis on the market in just one of our communities and found that there were 120 homes for sale. That would seem like a lot, until you really drill down into the specifics. Of the 120 homes, 38 of them are starter homes in the under 300K range. Another 32 are in the over 600K-2.5 Million range. Of the ones that are left in the middle ranges, from 300-600k, many are new construction homes which haven’t been built yet, and thus aren’t really ready for immediate purchase and occupancy. That leaves very few midrange properties for sale in the current marketplace. Of the ones that were left in the middle, many had been on the market for a long time, due to one issue or another. Nearly 30 percent of the total number listings, for example, were not in a “neighborhood setting.” These figures clearly don’t mean that there aren’t any homes out there to purchase, but rather it does explain why the Buyer looking for a really nice, midrange, three to four bedroom colonial, in a neighborhood setting, is having a tough time finding anything out there. It would also explain why most of the properties meeting that description that I have listed lately have seen multiple offers the first day.
Where does this leave us all? Well, for those folks wanting to make a move, it presents a unique window to capitalize on the existing inventory shortages, and be able to sell for a price that may be substantially higher than might be dictated merely by looking at a list of recent sales.
For those who had been on the market last year, but didn’t find a buyer, January is the perfect time to sit down and have us do a full re-analysis of the property, the marketing that was done, and what we might be able to do a bit differently to try and find a Buyer for the property this time. That’s oddly enough one of my favorite things to do…working with folks who had been on the market before, but didn’t sell. Overall, my track record of getting those back on the market and sold has been fabulous. If you’re interested, you can always ping me an e-mail at email@example.com and we can arrange a time to sit down and have a casual chat. I’ll show you some tricks of the trade that may very well lead to a lifechanging result.
Any questions at all, please don’t hesitate to ask. That’s why I’m here. I really look forward to hearing from you soon.
Steve Levine is President of Steve Levine Inc., and an agent at REMAX Prestige. He can be reached at 1-508-735-4663 or by e-mail at firstname.lastname@example.org.
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