The latest Existing Home Sales Report from the National Association of Realtors (NAR) demonstrates a definite correlation between a lack of inventory and rising prices.
In a nutshell, it is simple supply and demand economics. In other words, as the demand for an item increases, its supply continues to diminish and thereby drives its price up.
Nationally, Year-Over-Year inventory levels have dropped each of the last 18 months. Current inventory now stand at a 4 month supply, which is well below the 6 month supply needed for a ‘normal’ market.
The median price of homes sold in November (the latest data available) was $234,900. This was up 6.8% from last year and marks the 57th consecutive month with Year-Over-Year gains.
NAR’s Chief Economist, Lawrence Yun stated the following:
“Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017. Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country.”
But there is good news about rising prices. More and more “under-water homeowners are recovering from their negative equity situations and discovering that they are able to sell.
With this, they can now either move up and purchase their dream home or downsize to a property better suiting their needs. Look for these homes to come to market soon.
Bottom Line
Buyer demand continues to outpace the supply of homes inventory. Therefore, listing your house in the winter months will likely attract “serious buyers”, who are looking to close the transaction quickly. As always, call or text me at 727.755.3434 and I would be glad to assist you with a proper market pricing and strategy to sell your house in the local market!!
** Please note that data and statistics quoted above are national. Always consult a competent real estate practitioner familiar with your local market **
